- Want to ask Japan businesses to hike wages by 5% 'plus something extra' this year
- Hopes that it will lead to moderate demand-driven inflation
The narrative put out by Japanese officials previously is that inflation is driven by cost-push factors. But there is a subtle shift in thinking or at least in terms of approach as of late, in that they are seeking to put the pressure on firms to increase wages more meaningfully and quicker so as to support their charge for a policy shift as well. The upcoming "Shunto" spring wage negotiations is going to be a crucial one to watch.
