Some of the most-concrete signs yet that Japan is emerging from decades of near-zero inflation are emerging.
Shunto wage negotiations show most organizations asking wage hikes nearly twice as large as last year. Nikkei yesterday reported on the wage negotiations and offered this table to highlight some of the gains that were achieved.
“Demands submitted by around 3,000 labor unions under the Japanese Trade Union Confederation, or Rengo, averaged 6.09%, an increase of 0.24 percentage points from the previous year, and surpassing the 6% mark for the first time since 1993, it said last week.”
The Bank of Japan next decides on rates on March 19 and the market is 92% priced for no change but a hike to 0.75% is fully priced in by October. Data like this could shift the BOJ into a more-hawkish stance.