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Japan’s real wages rise for ninth month in September, backing BOJ rate hike

By Thomson Reuters Nov 5, 2026 | 5:32 PM

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)