Japan's wage growth surges to five-year high, bolstering inflation-fighting case

Japan's real wages skyrocketed in February, climbing 1.9% year-over-year in the strongest gain since 2021, as nominal pay surged 3.3% and base salaries rose 3.3% - the largest increase in nearly 34 years.

Boj hikes rate hike prospects on robust wage growth

The robust figures bolster the Bank of Japan's case for further policy tightening as household purchasing power improves after years of real income stagnation.

Overtime pay and bonus payments also rebounded strongly, underscoring broad-based gains across the labor market. The data comes ahead of the spring wage negotiations, which have already delivered pay increases above 5% for a third straight year, suggesting further upside to wage growth.