AsianFin -- Base salaries in Japan saw their largest increase in 32 years, providing potential support for the central bank to raise interest rates this month, assuming other economic data reinforces the view of a strengthening economic cycle.
The labor ministry reported on Thursday that base salaries rose by 2.7% in November compared to the same month last year, contributing to a 3% increase in nominal wages. Economists had forecast a 2.7% rise in nominal pay. A more consistent measure of wage trends, closely monitored by the central bank, showed a 2.8% rise in wages for full-time workers, remaining steady at or above 2% for the past 15 months.
The yen appreciated slightly against the dollar following the report, reaching as high as 158.10.
However, real cash earnings fell 0.3% from a year earlier, marking the fourth consecutive month of decline. This stagnation in real wages was partly due to inflation outpacing wage growth, with price increases accelerating in November as the government lifted subsidies for utility bills, leading to higher energy costs.
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