TOKYO, May 14 (Reuters) - Japanese Prime Minister Fumio
Kishida will issue an order on Monday for the government and the
central bank to conduct an assessment on whether recent wage
hikes would be sustainable, the Nikkei newspaper reported on
Sunday.
The assessment will focus on whether wealth is distributed
in a way that allows households to weather the rising cost of
living, and help sustainably achieve the Bank of Japan's 2%
inflation target, the paper said without citing sources.
Kishida will issue the order at a meeting of the
government's key economic council on Monday, and will consider
having the council conduct a regular assessment on the wage
outlook, the Nikkei said.
The assessment will seek to clarify the role the government
and the BOJ must play in achieving 2% inflation, and how they
should respond when inflation accelerates, the paper said.
Japan's core consumer inflation hit 3.1% in March, well
above the BOJ's 2% target, as companies pass on rising raw
material costs to households.
BOJ Governor Kazuo Ueda has said the central bank will
maintain ultra-low interest rates until the recent cost-push
inflation shifts into sustained price growth driven by robust
domestic demand, and accompanied by higher wages.
(Reporting by Leika Kihara, Editing by Franklin Paul)
Messaging: leika.kihara.reuters.com@reuters.net))
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