Japan’s hike to the minimum wage now appears to have risen to 31 yen

In “don’t spend it all at once” news ….

In mid-July the proposal was for a 28 yen boost to Japan’s minimum wage. Yesterday it advanced to 30:

The Nikkei (Japan media) is now reporting 31 yen is under consideration.

The country’s Central Minimum Wages Council is meeting this week (continuing meetings to be more accurate) and will (eventually) issue its advice to the labour minister.

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For the BOJ the implication is the impact on inflation. The Bank will welcome higher wages, although this is probably not anywhere near enough to adequate, to help boost inflation to its 2% target on a more stable basis. Current inflation levels are not viewed by the Bank of Japan as sustainable.

USD/JPY update: