May 13 (Reuters) - Japanese companies raised wages by
3.89% on average this year, the fastest pace of increase in
three decades, according to a survey conducted by Nikkei
newspaper that ran on Saturday.
The pace of increase was 1.54% point higher than the
previous year, a sign that more companies were hiking pay to
compensate employees for the rising cost of living and
responding to labour shortages, the Nikkei said.
Small and mid-sized companies raised wages by an average
3.57%, the highest level since comparable data became available
22 years ago, the Nikkei said.
Wage growth holds the key for how soon the Bank of Japan
(BOJ) could follow its global counterparts, and raise interest
rates from current ultra-low levels.
Japan's core consumer inflation hit 3.1% in March, well
above the BOJ's 2% target, as companies passed on rising raw
material costs to households through price hikes.
The BOJ expects inflation to slow back below 2% later this
year as the effect of past rises in fuel and raw material
dissipate.
BOJ Governor Kazuo Ueda has said the central bank would
maintain ultra-loose policy until wage growh broadens, and
becomes durable enough to heighten prospects of sustained
achievement of 2% inflation.
The survey was conducted on 308 companies between March 31
and April 20, the Nikkei said.
(Reporting by Leika Kihara; editing by Diane Craft)
Messaging: leika.kihara.reuters.com@reuters.net))
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