By Satoshi Sugiyama
TOKYO (Reuters) -Japanese household spending in September rose 1.8% from a year earlier, government data showed on Friday, slightly worse thanthe median market forecast for a 2.5% rise.
On a seasonally adjusted, month-on-month basis, spending fell 0.7%, versus an estimated 0.1% fall, internal affairs ministry data showed.
Consumption and wage trends are among key factors the Bank of Japan is watching to determine the timing of the next rate hike.
Prime Minister Sanae Takaichi said this week Japan was still “half way” in achieving sustainable and stable price growth backed by solid wage gains, signalling her preference for the central bank to go slowly in raising interest rates.
Japan’s inflation-adjusted real wages for September slumped for the ninth consecutive month as price rises outpaced nominal pay.
To counter inflation, Japan’s largest labour union group, Rengo, has said it would seek wage hikes of 5% or more in 2026, aiming for bumper pay hikes for the fourth consecutive year.
Separately, UA Zensen, the biggest industrial union group, said on Thursday it would seek a 6% pay increase in negotiations next year, same as the baseline target set for this year’s talks.To view the data on the website of the Ministry of Internal Affairs and Communications, click here: http://www.stat.go.jp/english/data/kakei/index.html
(Reporting by Satoshi SugiyamaEditing by Chang-Ran Kim)
