MNI BRIEF: BOJ: Smaller Firms’ Active Wage Hikes Spreading

Many Bank of Japan branch managers see a growing number of smaller firms raising wages to ensure they keep or attract workers , with some officials still cautious about higher earnings.

The regional managers also reported that many firms are transferring their own high costs through to retail prices, while others are considering a pass-through of cost increases on expectations that wages will also soon rise, the BOJ reported Monday. The labor shortage has further strengthened on the back of tighter labor market conditions, the Bank said.

According to Monday's report, many managers noted that businesses voiced concern over the impact of high prices on private consumption, although some saw a recovery in spending, including from overseas tourists.