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flag Japan’s real wages rose 1.4% in January, the first gain in 13 months, driven by higher pay and slowing inflation.

flag Japan's real wages rose 1.4% in January from a year earlier, the first gain in 13 months, as nominal wages climbed 3.0%—the fastest pace since July 2022—and inflation eased to 1.7%, the lowest since March 2022. flag Higher base pay, overtime, and bonuses fueled the increase, strengthening expectations that the Bank of Japan may raise interest rates further in its upcoming March meeting. flag Wage negotiations remain strong, with Japan’s largest union group seeking a 5.94% average raise for 2026, following a 5.25% increase in 2025—the largest in 34 years.

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