Unprecedented growth of workers’ wages in Japan
reports Mehr News Agency , the Japanese Ministry of Labor announced Wednesday that workers’ nominal cash revenue rose by 4.9 percent in December compared to the previous year, up from 4.9 percent in November. This reading went beyond the anticipation of the consensus of economists and made the biggest leap since year 2. It was a strong increase due to the jump of rewards.
Following the news, the news was reinforced against the dollar by up to 4.9 percent, reaching a price increase among Group 2 currencies. The Japanese government’s debt return also increased. Naoia Hasgava , strategist // Span> Senior bonds at Okasan Securities said that debt sales increased sharply due to wage growth data, as the market speculates that the Central Bank will continue to increase interest rates.
In another positive transformation for payment, real wages for the second consecutive month increased in December. Economists expected real wages to decline in the midst of increased inflation. Overall inflation in the country has been over 3 % for nearly three years and reached 4.9 percent in December.
Wage trends continue to monitor market monitoring even after the latest decision by the Central Bank of Japan to increase borrowing costs, as it can affect the future interest rate increase. Last month, the central bank made its third increase in less than a year after evaluating the wage growth and the market’s initial reaction to Donald Trump’s return to the White House.
Masato Quike , senior economist at The Sampo Plus said the wage growth process, of course, would remain a key indicator for Japan’s central bank policy decisions. According to him, the wage growth trend has been on the right track so far, but it is unlikely that the base payment will increase until spring talks.
at a press conference after deciding on interest rates in January, Casuo Central Bank Managing Director of the Central Bank announced the likelihood of further rates and noted that the country’s interest rates remain below the neutral level. Ouda emphasized the need to monitor economic conditions before the next move, and noted the importance of paying attention to payments.
Looking to the future, the market is closely witnessing the wage negotiations that are due to reach its peak in March to evaluate the stability of wage growth. The largest leader of the Japanese trade union has repeatedly met with business representatives to pressure higher wages, emphasizing their goal of raising wages by 5 % and a slightly higher target for smaller companies.
One of the main concerns of inflation and the continued weakness of the yen is to increase the price of imports. Japanese prices have been rising or higher for nearly three years, which has increased or higher, which has affected consumer emotions.
Yen is more than 2 percent less than the dollar last year, and will probably remain under pressure for a while, as US Federal Reserve officials are increasingly delayed. Intestncef from Trump’s uncertainties. In addition, a wave of tariffs has increased inflationary risks in the United States that can further weaken the yen.
Kennedy has now cautiously cautiously cautiously for many households, not only for the Central Bank of Japan but for the Prime Minister Ishiba is also worrying. The government Ishiba plans to stimulate $ 1.2 trillion Yeni equal to 1. Billion dollars, including the allocation of water and electricity subsidies and cash donations for low -income households, reinforce consumption.
Japan’s latest consumption process is set to be shown in future data, including household spending data, which is due to be released on Friday. GDP will also be released later this year, and economists expect to decline in private consumption growth.
, according to experts, the increasing wage trend of nominal wages has not affected consumption mainly due to the slowdown in real wages. If real wages grow stabilally with the decline in inflation in the middle of the year, it is likely that private costs will improve from that point.
