Underlying wage growth remained steady in September, keeping the Bank of Japan on its tightening path as markets look for triggers for the bank’s next move.
Nominal wages rose 1.9% from a year earlier, accelerating from August, the labor ministry reported Thursday. It came in line with economist expectations. Base salaries increased at the same pace, while a more stable measure, which avoids sampling issues and excludes bonuses and overtime, climbed 2.2% for regular workers, slowing slightly from the previous month.
Real cash earnings fell 1.4%, marking a ninth straight month of declines and also coming in around analyst forecasts. Falling real wages are keeping pressure on Prime Minister Sanae Takaichi’s government to ease the impact of inflation on households.
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