• Growth is outpacing prices needed for virtuous cycle
• Will work on steps to pass on labour costs on to consumers
• Wage hikes at small and medium-sized businesses are essential

Come March and April, it will go without saying that there will be substantial wage hikes from corporates and the bigger Japanese firms. However, what may trouble Japan will be whether or not smaller firms – especially those in less populated regions – will be able to deliver on the same front. If there is to be a growing disparity in the next few cycles, that could grow into more of a problem for Japan in the years to come.

This article was written by Justin Low at www.forexlive.com.