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7 April 2025 | Other

Japan's real wages declined for second straight month in February

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Japan's real wages declined for second straight month in February

Real wages in Japan dropped for the second straight month in February due to higher domestic inflation amid concerns over potential US import tariffs targeting major trading partners. President Donald Trump's policy initiatives have fueled concerns about slowing global GDP growth, potentially undermining Japan's fragile economic recovery, Reuters notes.

Japan's Labor Ministry reported a 1.2% decline in real wages for February. Meanwhile, the consumer inflation rate, excluding rent, but including food prices, grew to 4.3% year-on-year. The January reading stood at 4.7%.

Japan's average wages rose 3.1% in February, boosted by higher special payments, Reuters reports.

Japanese companies intend to raise wages by an average of 5.4% this year. This will be the largest increase over the last 30 years.

Elena Berseneva MarketCheese

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