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flag Japan's real wages drop 2.9%, facing challenges from inflation and potential U.S. tariffs.

flag Japan's real wages fell by 2.9% in May, the sharpest decline in nearly two years, as inflation continues to outpace wage growth. flag Nominal wages rose only 1%, with special payments dropping by 18.7%. flag Despite a rise in household spending, potential U.S. tariffs on Japanese exports pose risks to economic stability and wage growth, complicating the Bank of Japan's interest rate decisions.

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