(MENAFN) Japan experienced a 1.3 percent year-on-year decline in real wages for June, marking the sixth consecutive month of falling purchasing power as wage increases lagged behind inflation, despite the typical boost from the summer bonus period, official figures revealed Wednesday.

Preliminary data from the Ministry of Health, Labor and Welfare showed that average nominal cash earnings per employee climbed 2.5 percent compared to the previous year, reaching 511,210 yen (approximately 3,463 U.S. dollars). Base pay, or scheduled wages, also saw a 2.1 percent increase.

Although the 2025 spring labor talks resulted in an average wage hike of 5.25 percent, which includes base pay adjustments and regular raises, the rate of inflation continues to outstrip these gains.

The consumer price index—excluding imputed rent and used to measure real wages—jumped 3.8 percent in June, surpassing wage growth and causing real wages to drop.

Households are feeling the pressure of ongoing inflation, particularly from soaring food costs. Rice prices have more than doubled compared to last year, while prices for chocolate and coffee have surged roughly 40 percent, driven by rising raw material expenses.

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