Economic news

Wage growth in Japan is expected to accelerate almost 2.5%

Big Japanese companies are expected to announce annual wage hikes at the fastest pace in decades. Earlier, Prime Minister Shinzo Abe’s urged the businesses to increase staff salaries by 3% in order to nudge up inflation to the BOJ’s long elusive 2 percent target.

Photo: REUTERS/Yuriko Nakao

Over the past four years, the average salary growth in Japan was about 2%. Last year, companies raised wages 2.11%, in 2015 – 2.38%.

Toyota Motor Corp said on Wednesday it intends to increase base monthly salaries by 3.3%, or 11,700 yen.

The March talks between companies and unions in Japan, known as "shunto", are an important indicator of the further growth of consumer prices in the country.

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