Japan's nominal wage recorded the biggest increase in nearly 30 years, indicating that wage growth momentum continues, and supports the Bank of Japan to raise interest rates again in December as soon as possible. Japan's Ministry of Health, Labor, and Welfare announced on Friday that nominal wages rose 4.6% year on year in September, the biggest increase since 1997. The basic wage increased by 3.7%; after excluding bonuses, overtime pay and sampling bias, the wage index for more stable full-time workers rose by a record 3.1%. Japanese trade unions are preparing for a new round of annual wage negotiations. The negotiations will enter a critical stage in March next year. Preliminary signs suggest that the trend of salary increases developed over the past few years is expected to continue. Japan's largest trade union federation last month urged members to seek a salary increase of about 6%. The salary increase target was further raised compared to this year. The workers represented by the organization have received more than 5% salary increases for three consecutive years, indicating that wage increases are gradually becoming the norm. Japan fell into deflation for a long time after the asset bubble burst in the 90s of the last century, and wages stagnated for many years.

Japan's nominal wage recorded the biggest increase in nearly 30 years, indicating that wage growth momentum continues, and supports the Bank of Japan to raise interest rates again in December as soon as possible. Japan's Ministry of Health, Labor, and Welfare announced on Friday that nominal wages rose 4.6% year on year in September, the biggest increase since 1997. The basic wage increased by 3.7%; after excluding bonuses, overtime pay and sampling bias, the wage index for more stable full-time workers rose by a record 3.1%. Japanese trade unions are preparing for a new round of annual wage negotiations. The negotiations will enter a critical stage in March next year. Preliminary signs suggest that the trend of salary increases developed over the past few years is expected to continue. Japan's largest trade union federation last month urged members to seek a salary increase of about 6%. The salary increase target was further raised compared to this year. The workers represented by the organization have received more than 5% salary increases for three consecutive years, indicating that wage increases are gradually becoming the norm. Japan fell into deflation for a long time after the asset bubble burst in the 90s of the last century, and wages stagnated for many years.