[Japan] Real wages rose for sixth straight month in June

New government data has revealed that Japan's real wages grew 1.6 per cent in June from a year earlier, a sixth consecutive month of increases which supports the case for more rate hikes by the central bank, Reuters reports.

According to the data, average nominal wages, or total cash earnings, rose 3.4 per cent to 531,677 yen ($3,373.6) a month, faster than a ⁠revised 3.3 per cent gain in May.

The real pay growth reportedly matched May's revised 1.6 per cent gain.

Workers' base salaries, or regular pay, increased 3.4 per cent, accelerating from a 3.0 per cent rise in May. In June, overtime pay growth stood at 2.8 per cent, the same rate as in May, following a downward revision.

Special payments - primarily consisting of ⁠one-time bonuses that tend to be volatile - rose 3.5 per cent in June after a revised 7.4 per cent growth for May.

The Japanese ⁠government, in its latest economic forecast released in July, projected nominal wages to rise 3.1 per cent annually through fiscal 2027 and real wages to continue to grow despite persistent inflation.

The ⁠Bank of Japan maintained interest rates at its July policy meeting. Governor Kazuo Ueda reportedly cited upside risks ⁠to prices, seen as a nod to another rate hike as soon as September.

Source: Reuters

(Links via original reporting)

New government data has revealed that Japan's real wages grew 1.6 per cent in June from a year earlier, a sixth consecutive month of increases which supports the case for more rate hikes by the central bank, Reuters reports.

According to the data, average nominal wages, or total cash earnings, rose 3.4 per cent to 531,677 yen ($3,373.6) a month, faster than a ⁠revised 3.3 per cent gain in May.

The real pay growth reportedly matched May's revised 1.6 per cent gain.

Workers' base salaries, or regular pay, increased 3.4 per cent, accelerating from a 3.0 per cent rise in May. In June, overtime pay growth stood at 2.8 per cent, the same rate as in May, following a downward revision.

Special payments - primarily consisting of ⁠one-time bonuses that tend to be volatile - rose 3.5 per cent in June after a revised 7.4 per cent growth for May.

The Japanese ⁠government, in its latest economic forecast released in July, projected nominal wages to rise 3.1 per cent annually through fiscal 2027 and real wages to continue to grow despite persistent inflation.

The ⁠Bank of Japan maintained interest rates at its July policy meeting. Governor Kazuo Ueda reportedly cited upside risks ⁠to prices, seen as a nod to another rate hike as soon as September.

Source: Reuters

(Links via original reporting)