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Japan real wages rise for eighth straight month

August real wages increased 1.5% year on year, with regular wages holding steady near 4% while the headline real gain slowed from July’s 2%.

Reported · Written up by our desk · Central Banks

Japan real wages rose 1.5% year on year in August, marking the eighth straight monthly gain, Forexlive reported. The increase was slower than July’s 2%.

The report said nominal pay growth eased to around 4%, while overtime picked up, and that the Bank of Japan’s focus is on base pay rather than a bonus driven spike. It added that the wage pattern supports the case for further BOJ rate hikes.

Forexlive also noted a risk to the real wage picture from prices, with the inflation measure used in the calculation just above 2% and Tokyo core inflation accelerating alongside elevated oil costs linked to the Middle East conflict. It pointed to Reuters Tankan results showing service firms reporting that inflation is squeezing household purchasing power despite rising pay.

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