TOKYO - Japan's real wages in May fell 2.9 percent from a year earlier, marking the sharpest drop since September 2023, as persistent inflation continued to outpace wage growth, government data showed Monday.

Inflation-adjusted real wages, a barometer of households' purchasing power, fell for the fifth consecutive month, following a revised 2.0 percent fall in April, the Ministry of Health, Labor and Welfare said.

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Nominal pay, or the average total monthly cash earnings per worker including base and overtime pay, rose 1.0 percent to 300,141 yen (about $2,073), rising for the 41st straight month but decelerating from a revised 2.0 percent gain in April, ministry data showed.

Average wages were weighed down by lower special payments, including bonuses and transportation allowances, which fell 18.7 percent to 12,595 yen, a ministry official said, attributing the decrease to a sharp swing in bonuses as fewer workplaces made such payments in May.

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Meanwhile, the consumer inflation rate rose 4.0 percent year-on-year in May, driven by higher rice and other food costs, keeping real wages in negative territory.