Japanese wages climbed again in May, comfortably outpacing inflation and reinforcing the Bank of Japan¡¯s stance toward raising interest rates.
Nominal wages rose 3.2% in May from a year earlier after a revised 3.6% advance in April, the labor ministry reported Tuesday. The figure was weaker than economists¡¯ estimate but marked a fourth straight month of wage growth of at least 3%, the longest streak since 1992.
Base pay increased 3%, while a more stable measure ¡ª which excludes bonuses and overtime and is less affected by sampling distortions ¡ª rose 2.4% for full-time workers. When adjusted for inflation, cash earnings climbed 1.4% ¡ª the fifth straight month of gains, the longest stretch since 2021.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.