Japan's real wages fall for 17th straight month as inflation bites

Pay rises, price increases are key to Bank of Japan's next move

Commuters walk near Tokyo station on July 27: Inflation-adjusted wages have fallen in Japan for 17 months in a row. (Photo by Nanami Sato)

CHIHIRO ISHIKAWA, Nikkei staff writer

October 6, 2023 08:55 JST

Updated on October 6, 2023 14:25 JST

TOKYO -- Real wages in Japan dropped for the 17th straight month, the government said Friday, with average earnings declining 2.5% in August from a year earlier.

Cash earnings rose 1.1% from a year earlier, according to data from the Ministry of Health, Labor and Welfare published Friday. This compares with core consumer inflation, excluding fresh food, of 3.1%, which has also exceeded the Bank of Japan's 2% target for 17 consecutive months.