Japan's real wages rose 1.4% YoY in May, the fifth straight monthly increase,
but slowed from April's revised 2.0% as consumer inflation accelerated. Nominal
average cash earnings climbed 3.2% YoY to ¥311,165 (≈$1,918), below April's
revised 3.6% gain. Regular wages rose 3.0% YoY (April revised 3.3%); overtime
pay rose 2.9% (April revised 4.8%). The impact of the Iran war is beginning to
feed into consumer prices; together with yen weakness and earlier energy-driven
price rises, living costs may continue to rise. The Bank of Japan raised rates
last month to a 31-year high and reiterated that sustained wage and price
increases are a precondition for further tightening.
