A trade union organization in Japan will push for a salary increase in annual negotiations that surpasses the record increase in the previous round of negotiations. This is the latest sign that the momentum of wage growth is continuing. According to a plan finalized by the Japan Federation of Metal Industry Trade Unions on Wednesday, the organization is requesting a monthly basic wage increase of at least 12,000 yen in negotiations that will continue until March. This is the same initial goal set by the organization a year ago. The negotiations culminated in an agreement to raise wages by 10,169 yen this year, the highest since setting basic wage targets in 1998. Wage trends are being closely watched by the market because Bank of Japan Governor Kazuo Ueda repeatedly emphasized the need to confirm the “initial momentum” in wage negotiations as the central bank's December 19 policy decision was approaching. There are signs that steady wage growth is translating into demand-driven price increases, which supports the reason the Bank of Japan will raise interest rates at that time.

A trade union organization in Japan will push for a salary increase in annual negotiations that surpasses the record increase in the previous round of negotiations. This is the latest sign that the momentum of wage growth is continuing. According to a plan finalized by the Japan Federation of Metal Industry Trade Unions on Wednesday, the organization is requesting a monthly basic wage increase of at least 12,000 yen in negotiations that will continue until March. This is the same initial goal set by the organization a year ago. The negotiations culminated in an agreement to raise wages by 10,169 yen this year, the highest since setting basic wage targets in 1998. Wage trends are being closely watched by the market because Bank of Japan Governor Kazuo Ueda repeatedly emphasized the need to confirm the “initial momentum” in wage negotiations as the central bank's December 19 policy decision was approaching. There are signs that steady wage growth is translating into demand-driven price increases, which supports the reason the Bank of Japan will raise interest rates at that time.