Overview

• Nominal total cash earnings rose 1.5% to an average of ¥300,517, the slowest increase in three months.
• Regular pay increased 2.0%, while a 10.5% slide in one-off special payments tied to summer bonuses weighed on overall earnings.
• The consumer price measure used in the calculation rose 3.1% year on year, the lowest in 10 months but still above the BOJ’s target.
• July’s real-wage reading was revised to a 0.2% decline after initially showing a rise.
• Analysts say the weak data reinforce expectations the BOJ will proceed cautiously on rate hikes, a backdrop that tends to pressure the yen and cap JGB yields.