TOKYO, Feb 6 Reuters Japanese workers39; real wages fell for a 21th consecutive month in December but at a slower pace, data showed on Tuesday, as inflation eased, but a higher rate of wage growth is needed for the government39;s bid to support the economy.

Along with inflation, Japan39;s wage trend is closely watched, with the Bank of Japan regarding both indicators among the key data to consider in preparation for phasing out its massive stimulus policy.

Inflationadjusted real wages, a barometer of consumer purchasing power, fell 1.9 in December from a year earlier, but slowed from a revised 2.5 decline in November, data from the labour ministry showed. It was the slowest pace of decline since June 2023.

The consumer inflation rate the government uses to calculate real wages, which includes fresh food prices but excludes rent or equivalent, slowed to a 3.0 gain, the slowest pace of increase since June 2022, reflecting receding inflationary pressure from raw material costs.

Total cash earnings, or nominal pay, climbed 1.0 for the month, after a revised 0.7 gain in November. Base salary climbed 1.6 in December from a year ago, the highest reading since May 2023.

We can say real wages in December improved from the previous month and regular salary remained positive territory, a labour ministry official said.

Overtime pay, an indicator of business activity strength, slipped 0.7 yearonyear, after a revised a 0.2 rise.

Japan39;s biggest business lobby Keidanren and…