Japan will increase the minimum hourly wage to an average of JPY1,004, surpassing the government panel’s recommendation, as inflation affects consumer purchasing power. The labour ministry confirmed on August 18 that prefectures would boost the lowest wages by JPY43 an hour, the largest increase since 1978. The change will be implemented in October. Tokyo plans a raise its minimum to JPY1,113, while Kanagawa’s minimum will be JPY1,112. Okinawa, with the country’s lowest wage, intends a hike to JPY896. Despite cash earnings rising by 2.3% year-on-year in June, when adjusted for inflation, they decreased by 1.6%. The GDP exhibited a 6% annualised growth rate last quarter, with strong external demand but reduced business and private spending.