MNI BRIEF: Japan Sept Real Wages Negative For Ninth Month

Japan’s inflation-adjusted real wages fell 1.4% y/y in September, marking the ninth consecutive month of decline after a 1.7% fall in August, preliminary data from the Ministry of Health, Labour and Welfare showed Thursday.

The data highlight that nominal pay increases continue to lag inflation, leaving households squeezed by high living costs and adding pressure on the government to step up measures against rising prices.

Consumer prices excluding imputed rents rose 3.4% y/y in September, up from 3.1% in August, indicating a renewed acceleration in underlying inflation.

Total cash earnings, or nominal wages, increased 1.9% y/y in September after a 1.3% rise in August. Scheduled earnings – or regular pay – grew 1.9%, unchanged from the previous month.

Overtime pay rose 0.6% y/y in September, following a 0.4% gain in August, while bonuses and other special payments jumped 4.5% after falling 7.8% in the prior month.

Constant sample data, which smooth sampling volatility and are closely watched by Bank of Japan officials, rose 2.2% y/y in September, slowing slightly from 2.4% in August.