MNI BRIEF: Japan Oct Real Wages Unchanged Y/Y
MNI (TOKYO) - Inflation-adjusted real wages, a barometer of household purchasing power, was unchanged from a year earlier after staying in negative territory for two months, preliminary data released by the Ministry of Health, Labour and Welfare on Friday showed.
Bank of Japan officials expect real wages to turn positive as early as November and to rise gradually in December due to bonuses as nominal wages are likely to continue increasing. (See MNI POLICY: BOJ Wants FY25 Base-Pay Hikes Above 3%)
Total CPI minus imputed rents rose 2.6% y/y in October, slowing from 2.9% in September.
Scheduled earnings rose 2.7% y/y in October for the highest level in 31 years and 11 months after rising 2.5% in September and total cash earnings, or nominal wages, posted a 2.6% year-on-year gain, accelerating from 2.2% in September.
Overtime pay rose 1.9% y/y in October after falling 0.9% in September and bonuses and other special pay fell 1.7% y/y following +12.4%.