Overview

• Japanese wage growth in December was less than expected but showed sufficient underlying momentum for potential policy shifts.
• Real wages fell for the 21st consecutive month, but at a slower pace, indicating easing inflation.
• Full-time workers saw a 2% wage growth, marking a consistent rise for the fourth consecutive month.
• Annual labor talks between Keidanren and trade unions may pave the way for the Bank of Japan to exit its super-loose monetary policy.
• Household spending fell for the tenth consecutive month, highlighting ongoing economic challenges.