Real wages in Japan climbed 2.4% year-on-year in July 2024, marking the strongest increase since May 2021 and the seventh consecutive month of gains. Nominal cash earnings surged 4.7% to 436,401 yen, approximately $2,800, the most significant rise since January 1997. Base pay grew 4.1%, a pace not seen since April 1992, while special payments and bonuses jumped 6.3% as companies competed for talent. Inflation rose to 2.2%, breaching the 2.0% threshold for the first time this year. This data is expected to support the Bank of Japan’s potential interest rate hike at its mid-September policy meeting.
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