Japan’s wages grow most since 1997, keeping BOJ on rate-hike path
Nominal pay climbed 4.7% in July from a year earlier, following a revised 4% increase in June, the labor ministry has reported.
Japanese workers' nominal wages surged at the fastest rate in nearly 30 years in July, according to data that may keep the Bank of Japan on track for additional rate hikes. Nominal pay increased by 4.7% compared to a year ago, exceeding the previous record set in 1997. This follows a 4% rise in June, which was revised upwards. The gain of 4.7% was well above economists' expectations of 3.8% and marked the sixth consecutive month of wage growth surpassing 3%.
Real wages, adjusted for inflation excluding rent, grew by 2.4%, the largest increase in about five years. Base pay rose by 4.1%, while a more stable measure, excluding bonuses and overtime, saw a 2.7% increase for full-time workers.
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