Higher prices, higher wages, higher prices, higer wages .... that's the theory anyway
Its what the BOJ and the Japanese administration want to see
But its not really going to plan, with planned wage rises below last year's level
Reuters reports (bolding is mine):
- annual "shunto" wage negotiations at major firms are likely to disappoint.
- Toyota is close to agreeing to a monthly base wage rise of 1,500 yen ($13.27), half of the union's demand and far below the 4,000 yen gain given a year ago.
- Major electric machinery makers such as Hitachi, Mitsubishi Electric and Panasonic Corp are set to halve this year's base pay rise to 1,500 yen, according to Japanese media.
This news should be a yen negative to the extent that slow wage growth may encourage more BOJ easing to spur inflation towards target.
