Japan's July Wage Growth Hits Highest Level Since 1997

Japan's nominal wage growth reached a nearly 30-year high in July, driven by strong corporate earnings and a tight labor market. Data from the Ministry of Health, Labour and Welfare shows a 4.7% year-on-year increase in nominal wages, the largest gain since 1997. Real wages, adjusted for inflation, rose by 2.4%, the highest in five years. These robust economic figures have strengthened market expectations for a potential interest rate hike by the Bank of Japan this month.