Reported 25 days ago
The Bank of Japan (BOJ) has indicated that Japan's rising minimum wage, projected to increase by a record 5.1% by the end of March 2025, is likely to drive up inflation primarily through higher service prices. While the central bank remains optimistic about achieving its 2% inflation target sustainably, it highlights that ongoing wage hikes are essential for interest rate increases. Despite a current inflation rate of 2.4%, analysts believe the rise is primarily due to higher raw material costs rather than wage increases.
Source: YAHOO