Japan Overall Labour Cash Earnings for December 2024 have recorded a solid +4.8% y/y
- expected was +3.6%, prior +3.0%
YOvertime Pay +1.3%y/y, this is viewed as a barometer of business strength
- prior +1.4%
Wages adjusted for inflation are higher, +0.6% y/y, on bonus payments
- prior +0.5% (revised from -0.3%)
- rose for the second consecutive month
Confidence is growing in Japan that momentum for upcoming wage increases is strengthening. Prime Minister Ishiba views robust wage growth as crucial for supporting the country’s fragile economic recovery, while the Bank of Japan has emphasized that consistent, widespread wage hikes are necessary before considering further interest rate increases.
Yen is up a few tics on this data, USD/JPY circa 154.15.