Japan’s real wages rose for the ninth consecutive month in September, strengthening expectations of a rate hike by the Bank of Japan

(1) Japan's real wages in September increased by 2.2% year-on-year, marking the ninth consecutive month of growth and surpassing the revised 1.6% in August. This provides a basis for the Bank of Japan to continue raising interest rates. (2) The average nominal wage rose by 4.6% to 311,409 yen, the fastest increase since January 1997; basic wages grew by 3.7%, and overtime pay increased by 3.6%. Special allowances surged by 32.6%, which the government attributed to statistical anomalies rather than higher bonuses. (3) The inflation rate used to calculate real wages rose from 2.2% in August to 2.4% in September, still below the 3.4% of the same period last year. (4) Tokyo's core inflation rate for October far exceeded the Bank of Japan's 2% target, with many analysts expecting the Bank of Japan to raise rates as early as next month.