Average cash earnings in Japan increased by 3.2% yoy in May 2026, slowing from an upwardly revised 3.6% rise in April and coming in below market forecasts of 3.4%. Still, it marked the 53rd consecutive month of nominal wage growth and remained above 3% for a fourth month, the longest such streak since 1992. Earnings rose across all sectors, including construction (5.2%), manufacturing (3.8%), mining (6.3%), utilities (2.1%), information and communications (2.4%), transport and postal services (3.4%), wholesale and retail trade (4.7%), finance and insurance (7.1%), real estate (3.3%), the food industry (1.2%), and education (0.8%). Base pay grew 3%, following a revised 3.3% in April. Inflation-adjusted real wages climbed 1.4% yoy in May, marking a fifth straight month of increases and easing from an upwardly revised 2.0% rise in April, the longest stretch of gains in four years. Last month, the BoJ said steady wage and price increases are a prerequisite for another rate hike.