TOKYO, Dec 8 (Reuters) – Japan’s real wages shrank for the 10th consecutive month in October, with an uptick in nominal pay falling short of taming relentless consumer inflation, government data showed on Monday.

The BOJ is likely to raise interest rates next week and the government is expected to tolerate the decision, sources have told Reuters. Wage trends will be among the most important data points when the Bank of Japan board makes a decision on rates during its December 18-19 meeting.

Inflation-adjusted real wages, a key barometer of consumer purchasing power, fell 0.7% in October from a year earlier, the labour ministry data showed.

That was slower than a revised 1.3% contraction in September but extended a losing streak that started in January.

Average nominal wages, or total c

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