TOKYO, Aug. 6 (Xinhua) -- Japan's real wages dropped 1.3 percent year-on-year in June, marking the sixth straight month of decline as wage growth failed to keep pace with inflation despite the summer bonus season, official data showed Wednesday.
The average nominal cash earnings per worker rose 2.5 percent from a year earlier to 511,210 yen (about 3,463 U.S. dollars), with base pay (scheduled wages) up 2.1 percent, according to preliminary data released by the Ministry of Health, Labor and Welfare.
While annual spring labor negotiations in 2025 yielded an average wage increase of 5.25 percent, including base pay hikes and regular pay raises, the gains continue to be outpaced by rising consumer prices.
The consumer price index (excluding imputed rent), which is used to calculate real wages, rose 3.8 percent in June, exceeding the pace of wage increases and leading to a negative real wage outcome.
Persistent high inflation, especially in food prices, continues to squeeze household purchasing power. Rice prices have more than doubled year-on-year, while chocolate and coffee have surged by around 40 percent, reflecting higher raw material costs. ■
