TOKYO, Jan 10 Reuters Japanese workers39; real wages kept shrinking for a 20th month in November, data showed on Wednesday, raising fresh alarm for the sustainability of the country39;s economic recovery as firms enter the period of annual pay negotiation with labour unions.

Japan39;s wage trend draws an unusual amount of attention from financial markets worldwide since the Bank of Japan regards pay and inflation outlooks as the most important data in considering the dismantling of its negative interest rate policy.

Inflationadjusted real wages, a key determinant of consumer purchasing power, fell 3.0 in November from a year earlier, faster than a 2.3 decrease in October, data from the labour ministry showed.

The consumer inflation rate the government uses to calculate real wages, which includes fresh food prices but excludes owner39;s equivalent rent, decelerated to 3.3, the lowest since July 2022, thanks to falling fuel costs and moderating food price hikes.

However, nominal pay grew a paltry 0.2 in November, the slowest in nearly two years, after a 1.5 increase in October.

The main culprit behind the weak pay growth was a 13.2 contraction in special payments, which gives an early glimpse into the winter bonuses companies paid to employees. But the indicator tends to be very volatile this time of year due to the small sample size collected during the yearend period.

It39;s too early, if not misleading, to judge the winter bonus trends from November39;s special…