Japan’s Kishida Urges Firms to Raise Wages Faster Than Inflation

Isabel Reynolds
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(Bloomberg) -- Japanese Prime Minister Fumio Kishida said he would push firms for pay increases that exceed the inflation rate, as his government struggles with the country’s highest price rises in four decades.

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The premier was speaking Wednesday at a news conference at Ise Shrine, about 200 kilometers (125 miles) southwest of Tokyo, where he laid out some of his plans for the coming year. The blow to household finances from rising food and fuel prices has contributed to a fall in support for the once-popular premier to its lowest levels since he took office 15 months ago.

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“For the last 30 years, even when corporate profits increased, pay didn’t rise in line with expectations and the ‘trickle-down’ effect that had been envisioned didn’t happen,” Kishida said. “I will create a system where pay rises every year.”

The following are some of Kishida’s other remarks:

  • Must bring about pay rises without fail

  • Will work with private sector on semiconductors and other areas, promote bold domestic investment

  • Must tackle problem of women leaving full-time work

  • Want to try measures “on a different dimension” to tackle low birth rate, will outline plan to double spending on children by June

  • To visit France, UK, Italy, Canada and the US from Jan 9

  • Election could come at any time before lower house term is up in 2025

--With assistance from Takashi Hirokawa.

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