April data shows Japan’s real wages rising for a fourth month, with household spending surpassing forecasts, bolstering BOJ rate hike prospects.
Japan’s real wages increased 1.9% year-on-year in April, marking a fourth consecutive monthly gain. The rise was driven by a 3.5% jump in nominal wages, the fastest growth since December 2024, and a 7.4% surge in special payments, including bonuses.
Household spending also outperformed expectations, falling just 0.5% year-on-year compared to a forecasted 1.5% decline. Base salaries for full-time workers grew over 3% for the fourth straight month, while inflation eased to 1.5%, remaining below the BOJ’s 2% target.
The data strengthens the case for a Bank of Japan rate hike at its upcoming June 15-16 meeting, as wage growth and spending resilience signal sustained economic momentum.