Macro EconomyMedium•7 October 2026•
1 min read
Japan Nominal Wages Grow Above 3% as Foreign Reserves Shrink to $1.18T
Key Facts
1Japanese nominal wages maintained a growth pace above 3% in August.
2Japan's foreign reserves shrank to a total of $1.18 trillion.
Japanese nominal wages maintained a growth pace above 3% during August 2026. Reuters reported that average cash earnings rose 3.8% year-on-year, exceeding market forecasts of 3.7% and remaining above the 3% threshold for the seventh consecutive month.
Japan's foreign reserves shrank to a total of $1.18 trillion according to Ministry of Finance data. This decline in reserves occurs alongside persistent inflationary pressure and labor market tightness, supporting the Bank of Japan's case for potential rate hikes as wage growth remains robust.