The Japanese government announced on Tuesday that nominal wages in July increased by 4.7% year-on-year, higher than the revised 4% in June and the largest increase since 1997, exceeding economists' expectations of 3.8%. The salary increase has exceeded 3% for six consecutive months, the longest record in 34 years. After adjusting for the inflation rate excluding rent, real wages increased by 2.4%, the largest increase in about five years. Basic salary increased by 4.1%; The salary indicator for full-time employees, excluding bonuses, overtime pay, and sampling bias, increased by 2.7%. Stronger than expected wage data supports the Bank of Japan's interest rate hike next week.
