Posted 3/5/2024, 7:10:00 AM
Early Signs of Wage-Price Spiral in Japan, But Sustainable Wage Growth Still a Challenge
- Japan seeing early signs of positive cycle of rising inflation and wages
- Government guidance pushes companies to take more ownership in price-setting with suppliers
- Aim is to boost profits of smaller firms so they can hike wages
- Wage hikes at big firms not yet spreading to smaller companies that employ 70% of workers
- Bank of Japan focused on sustainable wage rises as condition for exiting ultra-loose monetary policy
