Japan's Real Wages Decline by 2.8% in November Amid Inflation Pressures

Japan's inflation-adjusted real wages fell 2.8% in November 2025 compared to a year earlier, marking the fastest decline since January 2025. This drop marks the 11th consecutive month of real wage losses, driven largely by a significant 17% decrease in one-time bonus payments. Meanwhile, inflation remains elevated at 3.3%, significantly outpacing nominal wage growth of just 0.5%. This persistent wage-inflation gap presents a structural challenge to the Bank of Japan's (BOJ) monetary policy framework and raises questions about household purchasing power.