Real wages in Japan declined for a third consecutive year in 2024 as inflation continued to outpace pay increases, which have been generous on a nominal basis in recent years.
“Inflation turned out to be higher than projected mainly due to rising rice prices and stronger downward pressure on the yen,” said Saisuke Sakai, chief economist at Mizuho Research & Technologies.
Inflation-adjusted pay including bonuses fell 0.2% in 2024. The nominal increase was 2.9%, while consumer-price inflation for the year came in at 3.2%. Real wages fell 2.5% in 2023 and 1.0% in 2022. In 2021, they rose 0.6%.
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