Government data showed that real wages rose 1.5% year on year in August. Nominal wages increased 3.8%, with both scheduled and non-scheduled wages rising broadly, pointing to continued improvement in real wages.
According to data released by the government, real wages rose 1.5% year on year in August, marking an improvement for the 8th consecutive month. By component, nominal wages rose 3.8%, base pay rose 3.8%, non-scheduled wages rose 5.2%, and special wages were unchanged. The yen-denominated total was ¥311,364, based on an exchange rate of ¥158.08 to the dollar.
The inflation rate used to calculate real wages was 2.2%, well below the 3.1% recorded in the same month a year earlier. The fact that wages have held up despite slowing price growth is being viewed as a factor supporting the BoJ's case for a rate hike.
The recovery in wages is expected to affect BoJ policy, while market views remain divided over the prospect of additional rate hikes following the policy rate increase in September. The latest inflation data for Tokyo's 23 wards showed core CPI accelerating in September at its fastest pace in 10 months year on year, raising concerns about persistent price pressures.