Japan's Actual Earnings Decline Further Amid Rising Inflation

Sharp Decline in Japan's Real Wages Highlights Ongoing Economic Strain

In November, Japan experienced its steepest drop in real wages in almost a year, marking the eleventh month in a row of falling earnings and underscoring the mounting strain on consumers' spending power. According to official figures released on Thursday, real wages—adjusted for inflation—were down 2.8% compared to the same month last year. This decrease, which mirrors the decline seen in January, is the largest since a 2.9% fall in September 2023. The data also reveals a worsening situation, as November's drop is significantly greater than the revised 0.8% decrease reported in October. The ongoing disparity between wage increases and rising prices continues to pose a major obstacle for the Bank of Japan.