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Japan's real wages rise for ninth month in September, backing BOJ rate hike

Reuters

By Satoshi Sugiyama

TOKYO, Nov 6 (Reuters) - ‌Japan's real wages rose 2.2% in September from a year earlier, marking the ninth consecutive month ​of ‌gains, government data showed on Friday, supporting the case ‌for the Bank of Japan to keep raising interest rates.

• Growth in real, or inflation-adjusted, pay picked up from ‌August's revised 1.6% gain.

• Average nominal wages, or total cash earnings, rose 4.6% to 311,409 yen ($1,972.94), the fastest rise since January 1997 and up from August's revised 3.9% growth.

• Workers' ⁠base salaries, or regular pay, increased 3.7%, roughly in line ‌with the 3.8% gain in ⁠August. A labour ministry official cited a steady rise in ​base salaries this year as a factor behind the improvement in real wages.

• Overtime pay growth in ​September stood at 3.6%, down from August's revised 4.9% ​rise.

• ‌Special payments, consisting mostly of volatile one-time bonuses, jumped 32.6% ​in September after a revised 1.8% increase in August. ⁠The ministry said the jump reflected a ‌statistical quirk ​rather than an increase in bonuses ​or other payments.

• The inflation rate used by the ministry to calculate the headline real wage indicator accelerated to 2.4% in September from 2.2% in August. It remained ‌below the year-earlier level of 3.4%

• Annual core inflation in Japan's capital well exceeded the central bank's 2% target ‌in October, ​data showed last week, highlighting mounting price pressure and cementing the case for further BOJ rate hikes.

• Many analysts expect the next BOJ rate hike as soon as next month.

($1 = ‌157.8400 yen)

(Reporting by Satoshi Sugiyama; Editing by William Mallard)