Japanese workers saw their nominal wages climb at the fastest rate in nearly 30 years, signaling strong and lasting growth in pay that could prompt the Bank of Japan to raise interest rates as early as December.
The labor ministry reported on Friday that nominal wages surged 4.6% in September compared to the same month last year, the biggest increase since 1997. Base pay rose 3.7%, while a more consistent measure excluding bonuses, overtime, and sampling variations hit a record 3.1% gain for full-time employees.
The data underscores the sustained momentum in wage growth, which has been a key factor in the Bank of Japan's monetary policy decisions. The central bank has been closely monitoring wage trends as it considers further tightening after ending its negative interest rate policy earlier this year.
The latest figures suggest that inflationary pressures may be easing, but the strong wage growth could still support consumer spending and economic activity, keeping the central bank on track for a potential rate hike in the near future.