Workers in Japan have seen their base pay rise at the fastest clip in 32 years, a result that sends a positive signal to the Bank of Japan as it weighs the prospects for demand-driven economic growth.
Base pay rose by 3.1% in January from a year earlier, the largest advance since October 1992, the labor ministry reported Monday. Also, a more stable measure of wage trends that avoids sampling problems and excludes bonuses and overtime showed wages for full-time workers grew by 3%, topping that threshold for the first time since July.
Growth in nominal cash earnings slowed in January to 2.8% from the previous year, an outcome that missed the 3% consensus forecast. The data highlighted the impact of price growth, as real cash earnings fell 1.8%, the largest drop since March 2024 and deeper than economists’ forecast of a 1.6% retreat.
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