Wages Finally Rising In Japan As Inflation Bites

Wages are rising in Japan more than they have in decades, at least for some workers. But so are prices, leaving many people feeling they must scrimp more than ever, the Associated Press (AP) reported.

Photo Insert: While major firms have raised wages this year, with large unions landing a 4% hike, the highest in 30 years, a quarter of small and medium-sized businesses -- employers of more than two-thirds of all workers -- gave no pay raises.

In May, the consumer price index was up 3.2% from a year earlier, well above the central bank's target of about 2%.

That's great news for policymakers trying to get the world's third largest economy out of the doldrums by keeping credit super cheap to spur demand and push prices higher, Mainichi Japan also reported.

But a survey of firms with five or more employees found real wages, taking into account higher prices, fell 3% from a year earlier in April, marking the 13th straight month of declines.

While major firms have raised wages this year, with large unions landing a 4% hike, the highest in 30 years, a quarter of small and medium-sized businesses -- employers of more than two-thirds of all workers -- gave no pay raises, according to the think tank Tokyo Shoko Research.

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