Japan's Cost of Living Crisis Squeezes Households as Real Wages Decline and Inflation Remains High
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Japan's real wages declined for the 18th straight month in September as rising prices squeezed household purchasing power.
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Consumer spending also extended its months-long decline in September, adding pressure for higher wage increases.
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Inflation slowed in September but remained high at 3.6%, while nominal pay growth was just 1.2%.
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Major Japanese companies agreed to average pay hikes of 3.58% this year, the highest in 30 years.
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Labor unions are expected to demand even higher wage increases of 5-6% in upcoming negotiations.