Japan's real wages drop in January, spring pay talks in focus

Data comes days before culmination of annual rounds of wage negotiations

20250310 Japan wages

Japanese inflation-adjusted real wages, which determine consumers' purchasing power, dropped 1.8% in January from a year earlier, government data shows. © Reuters

TOKYO (Reuters) -- Japan's real wages fell in January after two months of slight gains, data showed on Monday, days before the annual rounds of pay negotiations held each spring culminate at the country's major firms.

Despite regular pay rising the most in more than 30 years and overtime pay increasing, lifting nominal wages, inflation at a two-year high dragged down real wages -- the indicator policymakers see as key to achieving consumption-driven economic growth.

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