Japan's Real Wages Rise for Fourth Consecutive Month, Bolstering Rate Hike Prospects

Japan's real wages have increased for the fourth consecutive month, marking the longest streak of growth in four years, which strengthens the case for a rate hike by the Bank of Japan this month. According to Jin10, a report released by Japan's Ministry of Health, Labour and Welfare on Friday indicated that inflation-adjusted real wages rose by 1.9% year-on-year, accelerating from the revised 1.4% increase in the previous month. This figure surpassed economists' earlier expectations of a 1.7% rise. Nominal wages grew by 3.5%, also exceeding the market's general forecast of 3.1%. Basic wages increased by 3.4%, while another wage indicator closely monitored by Bank of Japan officials, which effectively avoids sampling errors, showed that full-time workers' wages grew by 2.6%. Both data points suggest that the underlying momentum for wage growth in Japan remains robust.