Japanese household spending massively wins expectations, reinforcing the case for further trips to battle

Japanese household consumption in December increased 2.7% in the year in real sense, the Friday states Japanese Statistical Office ReportMassively beating the expectations of economists who was also a reuters and celebrating his first increase from July 2024.

The picture sharply beat Reuters’s expectations of an increase of 0.2%, increasing the case for another increase in interest rates from Japan Bank.

Data come after Fight has increased its reference policy rate at 0.5%highest since 2008. The battle has long stated that he would increase the rates if he saw the “virtuoso cycle” of higher prices and growing wages.

On Thursday, Boj board member Naoki Tamur said that it was “necessary” to fight the short-term interest rates on “at least about 1%”to the second half of the fiscal year 2025. Japanese fiscal year 2025. ends on March 31, 2026.

Japanese upcoming discussions about spring wages, also known as “shunto” negotiations, will focus on investors watching interest rates of battle. Negotiations will start some time in February, and Larger companies will answer around mid -March.

Japanese trade union confederation, or Rento, said in January that an annual increase in salary for Japanese workers in 2025. It must be higher than a growth of 5.1% last year, because real salaries continue to fall, Said Reuters.

Data from the country Ministry of Labor He found that real salaries had fallen in the last three years, and real wages in the year fell 0.2% in 2024.

Rengo President Tomoko Yoshino allegedly said that the organization of work formally seeks to increase wages of at least 5% in this year’s salary “Shunto” salaries.

In order to ensure that the revenues of workers in smaller companies do not lag behind those who are bigger, Yoshino said that there should be a march of at least 6%for the previous one.

– CNBC -ov Lee Ying Shan contributed to this report.

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