Japan Real Wages Grow for First Time in 13 Months in January
Japan's real wages rose 1.4% in January for the first time in 13 months. This growth supports the Bank of Japan's case for further interest rate hikes.
Real wages in Japan increased in January for the first time in 13 months, driven by cooling inflation and the strongest growth in base salaries in over three decades. This positive turn strengthens the case for the Bank of Japan to continue raising interest rates and normalizing monetary policy following its move to 0.75% in December.
Inflation-adjusted real wages, a critical barometer of consumer purchasing power, rose 1.4% in January from a year earlier, rebounding from a 0.1% decline in December. Average nominal wages, or total cash earnings, increased 3.0% year-on-year to 301,314 yen ($1,911), marking the fastest pace since July and accelerating from the 2.4% gain seen in December.
