Japan Paper Calls for Wage Hikes amid Higher Prices

Economy Politics

Tokyo, July 29 (Jiji Press)--A Japanese government report released Friday underlined the need for increasing wages stably at a pace commensurate with rising prices.

The Japanese economy continues to recover from the slowdown caused by the novel coronavirus pandemic while prices are soaring due chiefly to the impact of Russia's invasion of Ukraine, said the Annual Report on the Japanese Economy and Public Finance.

Japan is not in a state of stagflation, or a recession accompanied by inflation, thanks to strong corporate earnings and a pickup in personal spending, said the report, which was submitted to the day's cabinet meeting by economic and fiscal policy minister Daishiro Yamagiwa.

Prices in Japan have been on the rise, with the overall consumer price index, including fresh food prices, growing 2.5 pct in May from a year before, but the upward pressure on prices in the country is weaker than those in Europe and the United States, the report also said.

The public and private sectors should continue working together on raising prices to prevent Japan from falling into stagflation or deflation.

[Copyright The Jiji Press, Ltd.]

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