Japan Real Wages Rise 1.5% in August, Extending Growth Streak to Eight Months

Japan's inflation-adjusted real wages rose 1.5% year-on-year in August, marking an eighth consecutive month of growth, according to government data released Wednesday. Although real wage gains moderated from a revised 2.0% in July, underlying wage momentum remained firm. Total nominal cash earnings increased 3.8% to roughly 311,000 yen, slowing from a revised 4.3% in July but beating the 3.7% market consensus. Core regular base pay held steady at 3.8%, while overtime earnings accelerated to 5.2%. The moderation was primarily driven by flat special bonus payments following strong July payouts, with the inflation deflator holding at 2.2%.