Indicators
Japan’s Base Pay Rises Most in 32 Years, Helping Rate Hike Path
- Solid wage results support near-term additional rate hike case
- Base salaries rose 2.7% in November, although real wages fell
This article is for subscribers only.
Japanese workers’ base salaries grew the most in 32 years, offering potential support for the central bank to raise rates this month if other data back up the thesis that a positive economic cycle is strengthening.
Base salaries increased by 2.7% in November from a year ago to drive up nominal wages by 3%, the labor ministry reported Thursday. Economists had expected nominal pay to rise 2.7%. A more stable measure of wage trends watched by the central bank that avoids sampling problems and excludes bonuses and overtime showed wages for full-time workers gained 2.8%, remaining at or above 2% for 15 months.