Japan's Rengo to Demand 5-6% Wage Hikes in 2027, Targeting Real Growth

Japan's largest union federation, Rengo, will push for wage increases of at least 5%, ideally 6%, in next year's negotiations, continuing a three-year trend. The goal is to ensure real wage growth exceeds inflation by at least 1 percentage point, a shift toward sustained purchasing power gains. This reinforces expectations of a virtuous cycle of wage growth and inflation, supporting the Bank of Japan's normalization path.

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