inflation. ">
inflation. ">
Faulty data scandal reveals lower 2018 wage growth in Japan
Nikkei -- Jan 24
A data scandal at Japan's labor ministry has created further headaches for the Abe government in its protracted attempts to spur inflation.

The ministry's Monthly Labor Survey overstated nominal pay increases in the first eleven months of 2018. Corrected monthly results released on Wednesday saw year-on-year wage growth drop by between 0.1 and 0.7 percentage point. Officials revised data for every month.

The Bank of Japan has been trying since 2013 to reach 2% price growth and bring the country out of deflation. Wage hikes, policymakers have argued, increase consumers' purchasing power and push prices up. But Wednesday's revisions show households have less disposable income than previously thought.

The scandal stems from the ministry's failure to survey all companies in Tokyo with 500 or more employees. Since 2004 it has collected data from only about one-third of such businesses. Pay at large companies is relatively high, meaning the total wages paid were greater than the published results.

Officials corrected the survey methodology last year, meaning that wages appeared to jump significantly from a year earlier. With the revisions applied to previous years, however, 2018's pay hikes are shown to be less dramatic.

News source: Nikkei
Mar 26
Tokyo's benchmark Nikkei Average saw its biggest fall of 2019. The drop followed a plunge on Friday on Wall Street that came amid new worries of an economic slowdown. (NHK)
Mar 20
As trade talks between Japan and the US look likely to start soon, and the price of oil drops in Japan, the value of the Yen is increasingly under threat of deflation. (newsonjapan.com)
Mar 20
The average price of all types of land in urban areas rose last year for the first time since 1992 as the growing influx of foreign tourists rejuvenated real estate investment, the government said Tuesday. (Japan Times)
Mar 19
The Japanese economy will likely once again be assessed as "recovering at a moderate pace" in the government's monthly report due out Wednesday, which also will note potential risks from overseas economies. (Nikkei)
Mar 16
Japan will tighten oversight of pay for foreign employees through ordinances issued Friday, aiming to address major concerns over working conditions as the country prepares to accept more labor from abroad starting next month. (Nikkei)
Mar 09
Since the 2008 global financial crisis, expansionary monetary policy has been the order of the day in most of the major advanced economies. (Japan Times)
Mar 08
Chief Cabinet Secretary Yoshihide Suga denied a media report Thursday that the government is considering introducing a minimum wage for specific industrial sectors that would apply to workers nationwide, regardless of where they live. (Japan Times)
Mar 04
The inflation outlook is looking dismal for the Bank of Japan as cheaper oil and falling mobile phone charges threaten to push price growth toward zero by mid-summer. (Japan Times)
Mar 02
Japanese employees and companies are expected to continue shouldering a relatively high ratio of taxes to income. Officials say that on average, 42.8 percent of income will go to taxes and social welfare premiums in fiscal 2019. (NHK)
Feb 26
The Bank of Japan can abandon its 2 percent inflation target or suspend efforts to achieve it once the job market is tight enough because the public is better off having prices fall, not rise, an economic adviser to Prime Minister Shinzo Abe said. (Japan Today)