Prices Are Rising In Japan - But Wages Aren’t Keeping Up (opens in new tab)

For the fourth year in a row, real wages in Japan have dropped in 2025\. The country has struggled with long-running economic stagnation, marked by weak GDP growth, persistent deflation, and a weak yen\. But there are recent signs of revival\. The Nikkei has hit record highs, and wages are rising\. The catalyst is the landslide election victory of Prime Minister Sanae Takaichi, who has championed “Sanaenomics”—a mix of proactive fiscal spending, structural reforms, and stimulus to boost growt...