Japan real wages rise for eighth straight month

The growth in real pay was slower than July's revised 2.0% increase. Average nominal wages, which represent total cash earnings, rose 3.8% to 311,364 yen ($1,969.66) in August, a deceleration from the revised 4.3% increase seen in July. Workers' base salaries, or regular pay, remained unchanged at a 3.8% increase from July. However, overtime pay growth accelerated to 5.2% in August, up from July's revised 4.5% rise.

Special payments, primarily one-time bonuses, showed no growth in August, contrasting with a revised 5.3% increase in July. The inflation rate used to calculate the headline real wage indicator remained steady at 2.2% in August, below the 3.1% recorded a year prior. Data from the previous week indicated that annual core inflation in Tokyo accelerated in September to its fastest pace in 10 months, further highlighting price pressures and bolstering the argument for additional rate hikes by the central bank.