Driven by improving corporate profits and a tight labor market, Japan's wage growth rate remains strong, adding a basis for the Bank of Japan to raise interest rates again in the coming months. Japan's Ministry of Health, Labor, and Welfare released data on Wednesday. Nominal wages rose 3.4% year on year in June, and the revised May data showed a 3.3% increase. This figure is in line with the median forecast in the Bloomberg economists' survey. Wage increases were over 3% for five consecutive months, marking the longest continuous upward cycle in 34 years. Basic wages also rose 3.4%; more stable indicators excluding bonuses, overtime pay, and sampling bias showed that wages for full-time workers rose 2.9%. Real wages increased by 1.7%, achieving six consecutive months of growth, the longest continuous increase since 2021.

Driven by improving corporate profits and a tight labor market, Japan's wage growth rate remains strong, adding a basis for the Bank of Japan to raise interest rates again in the coming months. Japan's Ministry of Health, Labor, and Welfare released data on Wednesday. Nominal wages rose 3.4% year on year in June, and the revised May data showed a 3.3% increase. This figure is in line with the median forecast in the Bloomberg economists' survey. Wage increases were over 3% for five consecutive months, marking the longest continuous upward cycle in 34 years. Basic wages also rose 3.4%; more stable indicators excluding bonuses, overtime pay, and sampling bias showed that wages for full-time workers rose 2.9%. Real wages increased by 1.7%, achieving six consecutive months of growth, the longest continuous increase since 2021.