Japan's Base Wages See Highest Increase Since 1993
Record wage growth in May signals potential for Bank of Japan policy shift despite ongoing inflation challenges.
Overview
- Base pay for Japanese workers rose 2.5% in May, the fastest growth since 1993.
- A more stable measure for full-time workers showed a record 2.7% increase.
- Average wage increases this year are the largest since 1991, with a 5.1% rise secured by unions.
- Despite nominal wage gains, real wages fell for the 26th consecutive month due to inflation.
- Economists remain cautious about a BOJ rate hike amid mixed signals on consumer spending.