TOKYO, June 5 : Japan's real wages climbed 1.9 per cent in April from a year earlier, government data showed on Friday, marking a fourth consecutive monthly gain, as higher special payments boosted overall earnings and improved household purchasing power.Here are a few details: • The Bank of Japan, which will next review its interest rates on June 15 and 16, considers steady rises in wages and prices as a prerequisite for another hike. The Japanese central bank is expected to raise interest rates this month unless a sharp escalation in the Middle East conflict roils markets, sources told Reuters.• Special payments, consisting mostly of one-time bonus payments, jumped 7.4 per cent in April after a revised 0.7 per cent fall for March.
• A labour ministry official said, in addition to the boost from special payments, steady growth in nominal wages and easing inflation have helped lift real wages.• Average nominal wages (total cash earnings) rose 3.5 per cent year-on-year to 312,425 yen ($1,953.88), marking the fastest growth since December 2024. This followed a revised 3.1 per cent increase in March, and represents the first time in over 34 years that wage growth has exceeded 3 per cent for three consecutive months.• The inflation rate, used by the ministry to calculate the headline real wage indicator, eased to 1.5 per cent in April from a 1.6 per cent gain in March, staying below the BOJ's 2 per cent target for a fourth consecutive month.• Consumer inflation in Japan has been easing as government subsidies offset rising import costs from a weak yen, as well as surging oil prices due to the Iran war.• Workers' base salaries, or regular pay, grew 3.4 per cent in April, unchanged from the revised figure in the previous month. Base pay for full-time workers grew more than 3 per cent for a fourth consecutive month.• Overtime pay rose 4.2 per cent in April, up from a revised 3.1 per cent gain in March.• Meanwhile, Japanese household spending fell less than expected in April from a year earlier, internal affairs ministry data showed, extending a decline streak to five straight months.• Consumer spending dipped 0.5 per cent year-on-year, beating the median market forecast for a 1.5 per cent drop and posting the smallest decline in five months.• On a seasonally adjusted, month-on-month basis, spending grew 1.6 per cent versus an estimated 0.8 per cent rise.($1 = 159.9000 yen)
