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TOKYO (Reuters) – The Bank of Japan said on Friday the country’s rising minimum wage is likely to push up inflation mainly through higher services prices.
Japan’s average minimum wage is set to rise a record 5.1% in the fiscal year to end-March 2025, with the increase particularly large for areas where the level was kept low, the BOJ said in a full version of its quarterly outlook report.
“If Japan’s minimum wage continues to rise, that is likely to push up prices mainly for services,” it said.
(Reporting by Leika Kihara; Editing by Tom Hogue)