FX.co ★ Japan Nominal Wage Growth Accelerates in February

In February 2025, nominal wages in Japan experienced a year-on-year increase of 3.1%, up from a revised 1.8% rise in January, aligning with market forecasts. This robust wage growth provides a promising indicator for the domestic economy, which continues to grapple with the challenges posed by global trade tensions. Despite the positive nominal wage figures, inflation-adjusted real wages—a key measure of consumer purchasing power—declined by 1.2%, marking the second consecutive month of decrease. While the healthy nominal wage growth supports the Bank of Japan's recent strides towards policy normalization, escalating global uncertainties continue to cast doubt on the prospects for further interest rate hikes.