Japan’s Ministry of Health, Labour and Welfare said inflation-adjusted real wages fell 2.9% in May from a year earlier, the steepest drop in almost two years and the fifth consecutive monthly decline. The fall underscores how price increases continue to erode purchasing power despite nominal salary gains. Average cash earnings edged up 1.0% to ¥300,141, extending a 41-month run of nominal growth, but the pace slowed as special payments such as bonuses slid 18.7%. The consumer-price gauge used for the calculation rose 4.0%, outpacing wage growth and leaving real incomes in negative territory. Separate results from the ministry’s National Livelihood Survey show the strain on households is widening. Single-person and elderly households both reached record highs since the survey began in 1986, while the share of households raising children fell to an unprecedented 16.6%. Overall, 58.9% of households said their finances are "hard," a proportion that climbs to 64.3% among families with children, reflecting the gap between persistent inflation and sluggish wage gains. The figures add pressure on policymakers and the Bank of Japan, which is watching wage trends closely as it weighs the timing of further interest-rate moves.