According to BOJ, Increasing Minimum Wage in Japan May Boost Inflation

The Bank of Japan (BOJ) stated that the country's rising minimum wage is likely to increase inflation mainly through higher service prices. In the full version of its quarterly outlook report, BOJ noted that Japan's average minimum wage is expected to show a record increase of 5.1% in the fiscal year ending March 2025, with the increase being particularly significant in areas where the wage level has been kept low. The bank commented, "If Japan's minimum wage continues to rise, it will likely primarily lead to increases in service prices."