Barely half of the firms in the latest Reuters monthly poll of Japanese business have said that they can raise wages higher than inflation.
Reuters highlights:
- 51% said they could raise wages beyond a 2.8% rise in Japan's core consumer prices in 2024
- 60% said wage increases would be possible only for less than 3%, firms citing much higher costs from energy and materials
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Wage talks early in 2024 will be keenly eyed. Large pay hikes are expected to help lift household spending and give the Bank of Japan central bank the conditions it needs to see sustainable and stable 2%+ inflation and to thus dial back massive monetary stimulus.
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The Reuters monthly poll of Japanese businesses had 155 respondents, which is a tiny sample size.
