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)
