Wage growth, a key concern for Japan's private consumption

Abenomics has been successful in boosting corporate profits via a weaker JPY, but this has yet to result in improved consumption through higher wages. 

This year's spring wage negotiation reportedly might raise local workers' average pay by 2.23% y/y. While the pay hike is higher than last year's, the 'base-up' is less than 1% y/y, falling short of the above-2% headline inflation in Q1-2015. 

Slower inflation momentum in the coming months may lift purchasing power slightly, but more substantial and continued pay hikes are needed to revive consumption.