Real wages haven’t fallen as sharply as the official data released by the Ministry of Health, Labour and Welfare would suggest. Nonetheless, it is striking that workers are not benefitting much from the most pronounced labour shortages since the early 1990s. Workers’ lack of bargaining power may explain why BoJ Governor Ueda seems to be more worried about the hit to consumption resulting from the recent surge in food prices than about any resulting upward pressure on household inflation expectations.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services