MNI BRIEF:Japan Real Wages Dip For 18th Straight Month In Sept

Japan's inflation-adjusted wages, a barometer of households' purchasing power, narrowed to 2.4% y/y in September, down from a 2.8% fall in August, data released by the Ministry of Health, Labour and Welfare showed on Tuesday.

Real wages stayed in negative territory for the 18th straight month in September even the as the consumer price index rise slowed, underlining the fact that household incomes still haven't caught up with price rises. That is particularly impeding low-income household and senior citizen spending patterns,.

Total cash earnings, or nominal wages, posted a 1.2% y/y rise in September, accelerating from August's +0.8%, while scheduled earnings rose 1.4% y/y in September, also accelerating from +1.2% in August. Overtime pay rose 0.7% y/y in September after rising 0.3% in August and bonuses and other special pay fell 6.0% y/y in September following August’s -6.3%.

Wages remain a key metric in the BOJ's policymaking reaction mechanism and marketwatchers continue to look for signs of sustained strength in the incomes before the central bank steps away from ultra-loose monetary policy.