Japanese wages are expected to grow in real terms in the second half of 2024 for the first time in more than three decades, according to Asset Management One.
Wages in Japan are rising more rapidly than they did in 2023, the investment management firm noted in a recent report. Average monthly cash earnings in the country rose 3.6% year on year in July. In comparison, the Japanese core consumer price index, which excludes fresh food, climbed by 2.7% in July.
Japanese real wages in July rose 0.4% year on year, rising for a second consecutive month after a 1.1% rise in June.
Asset Management One economists anticipate regular wages likely maintained this rate of growth this summer, despite recent volatility in the yen and Japanese equities.
“The past three decades in Japan have been defined by minimal price inflation and negligible wage growth,” said Yuko Iizuka, economist at Asset Management One.
Wages growing faster than inflation typically …