TOKYO, Dec 8 (Reuters) - Japan's real wages declined for
a 19th consecutive month in October, government data showed on
Friday, highlighting that cost-push pressures continue to stifle
consumers' purchasing power.
    Financial markets worldwide pay close attention to these
wage trends as the Bank of Japan regards sustainable pay
increases as a prerequisite for dismantling its ultra-loose
monetary stimulus.
    Inflation-adjusted real wages, a barometer of consumer
purchasing power, fell 2.3% in October from a year earlier,
after a revised 2.9% decline in September, data from the
Ministry of Health, Labour and Welfare showed. 
    The consumer inflation rate officials use, which includes
fresh food prices but excludes owner's equivalent rent,
re-accelerated to 3.9% after slowing for two months. 
    "Price increases have outpaced wage growth," a labour
ministry official said. 
    At the same time, nominal pay growth in October was 1.5%,
the highest since June, after a downward revision to 0.6% in
September. The results partly reflect an increase in special
payments, which went up 7.5% year-on-year in October after a
revised 8.6% drop in the previous month, the ministry official
said. 
    The indicator tends to be volatile in months outside the
twice-a-year bonus seasons of November and January and June to
August.    
    A sign of relief for households may be on the horizon. Core
inflation in Japan's capital, a leading indicator for nationwide
trends, rose in November but at a slower pace than the previous
month. The figure underscored the Bank of Japan's view that
cost-push inflation will gradually dissipate. 
    Meanwhile, Japan's largest union "Rengo" said last week it
will ask for a pay increase of at least 5% at next year's spring
wage negotiations to cushion the blow from rising living costs. 
    Regular or base salary in October rose by 1.4% year-on-year,
from a revised 1.0% increase in the previous month, the data
showed. 
    Overtime pay, a gauge of business activity, decreased in
October by 0.1% year-on-year, after a revised 0.5% drop in
September.    
    
    The table below shows preliminary data for monthly incomes
and number of workers in October:

----------------------------------------------------------------
   Payments             (amount)                (yr/yr % change)
 Total cash earnings   279,172 yen  ($1,904.70)     +1.5
 -Monthly wage         272,291 yen                  +1.3
 -Regular pay          252,825 yen                  +1.4
 -Overtime pay          19,466 yen                  -0.1
 -Special payments       6,881 yen                  +7.5
----------------------------------------------------------------
 Number of workers      (million)               (yr/yr % change)
 Overall                 52.641                     +1.9
 -General employees      35.593                     +1.2
 -Part-time employees    17.048                     +3.3
----------------------------------------------------------------
The labour ministry defines "workers" as 1) those employed for
more than one month at a company that employs more than five
people, or 2) those employed on a daily basis or had less than a
one-month contract but had worked more than 18 days during the
two months before the survey was conducted, at a company that
employs more than five people.


To view the full tables, see the labour ministry's website at: http://www.mhlw.go.jp/english/database/db-l/index.html
 


($1 = 146.5700 yen)

 (Reporting by Satoshi Sugiyama; editing by Christina Fincher)