In August, Japan experienced a 0.6% decline in real wages and a 1.9% drop in household spending, raising concerns about the economy.

In August, Japan experienced a 0.6% decline in real wages and a 1.9% drop in household spending, raising concerns about the economy and the likelihood of the Bank of Japan raising interest rates. The decrease in wages, attributed to lower summer bonuses, follows two months of growth. Although nominal wages rose 3.0%, inflation outpaced this increase. The overall economic situation casts doubt on sustained consumer spending, vital for economic recovery.