Average cash earnings in Japan increased by 3.8% year-on-year in August 2026, slightly exceeding market expectations for a 3.7% gain but slowing from a revised 4.3% rise in July. Still, it marked the 56th consecutive month of nominal wage growth and remained above 3% for a seventh month, the longest such streak since 1992. Regular pay, including base salaries, rose 3.8% to mark continued solid wage growth, while overtime pay accelerated to 5.2% from a revised 4.5% increase in July. In contrast, special payments, which mainly consist of one-time bonuses, were unchanged after a revised 5.3% increase in the previous month. Meanwhile, real wages rose 1.5%, marking the eighth consecutive month of gains, although growth eased from a revised 2.0% increase in July. The result was based on a 2.2% inflation rate, unchanged from July and below 3.1% a year earlier. The sustained real wage gains strengthen the case for the Bank of Japan to continue raising interest rates after its latest hike.