Basic wages in Japan recorded their highest growth rate in 32 years.

Data released by Japan's Ministry of Health, Labour and Welfare on Friday morning showed that Japan's base wages grew at the fastest pace in 32 years in October, bolstering real wage growth after two months of declines.

The Ministry's data indicated that base wages rose by 2.7% in October, marking the highest increase since November 1992, as more companies set higher wage growth rates after major companies agreed to an average increase of 5.1% during annual wage talks.

At the same time, the inflation rate used by the ministry to calculate real wages—which excludes rental equivalent for homeowners—slowed to 2.6%, the slowest rate recorded in nine months, leading to real wages adjusted for inflation—a key indicator of consumers' purchasing power—remaining unchanged in October, after recording a decline of 0.4% in September and a decline of 0.8% in August.

This came after opposition lawmakers pressured the government and the Bank of Japan to target positive growth in real wages after the ruling coalition lost its majority in the House of Representatives in the general election last October.

At the same time, data from the Japanese Statistics Bureau showed that real household spending decreased by 1.3% in October year-on-year, despite nominal spending recording an increase of 1.3%.