Japan's Largest Base Pay Increase in Decades Faces Inflation Challenges

Despite historic wage hikes, real wages decline for the 25th consecutive month due to rising living costs.

Base pay in Japan rose by 2.3% in April, the largest increase since 1994.
Real wages fell 0.7% in April, marking the 25th month of consecutive declines.
Inflation of 2.9% continues to outpace wage growth, impacting workers' purchasing power.
Nominal wages grew by 2.1%, with notable increases in regular pay but a drop in overtime pay.
Economists predict potential positive real wage growth within the 2024/25 fiscal year, though uncertainty remains.