Japan’s nominal wages rose 4.7% year-on-year in July, accelerating from a revised 4% in June and marking the fastest increase since 1997. The figure topped economists’ forecast of 3.8% and extended wage growth above 3% for a sixth straight month, the longest such run in 34 years.
Inflation-adjusted real wages excluding rent increased 2.4%, the strongest gain in nearly five years. Base wages rose 4.1%, while a stable measure of real wages for full-time employees excluding bonuses, overtime pay and sampling bias climbed 2.7%.
The stronger data reinforced market expectations that the Bank of Japan may raise rates at next week’s central bank meeting, with some investors anticipating additional tightening after a relatively short interval.
Japan Wage Growth Hits Fastest Pace Since 1997
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