The second results of the annual job interviews issued by the Ringo Trade Union Federation, the largest union in the country, showed Friday that Japanese companies agreed to increase wages by 5.4 percent this year.
This number is just less than the initial reading of 5.46 percent that was announced last week, but is traveling to be the largest wage increase in 34 years. The Ringo group, which includes 7 million members, issued the results of the wage negotiations that had an intense follow -up in different stages.
The leading companies conclude their talks first in mid -March. Usually the final results are lower than the initial numbers, since most of the agreements are placed between small companies and their unions from April to June.
“The levels of agreed salary increases were high,” said Tomoko Yosino, head of the Ringo group, a press conference. We aim to generalize this momentum to small companies.
This reading was compared with the average increase in wages, which reached 5.25 percent last year in the second statistics, which was subsequently modified in several phases to reach the final average of 5.1 percent announced in July.
In the meantime, the government data showed Friday that the annual primary inflation of consumers’ prices in Japan recorded 3.0 percent in February, to remain above the goal of the central bank for two percent and improve market expectations with further increases in interest rates.
The increase in reading the basic inflation, which excludes the effect of the costs of fresh and volatile food goods, has exceeded the average expectations of the 2.9 percent market. However, inflation slowed down the previous month when it reached 3.2 percent, due to the resumption of support for fuel costs.
A separate index has increased, excluding both the effects of fresh food and fuel costs, both the Bank of Japan followed closely as an indication of prices on a wider scale, 2.6 percent in February on an annual basis, compared to 2.5 percent January (January) and represented the fastest increase in the annual basis since March 2024 when it has increased by 2.9 per cent.
The Central Bank of Japan maintained the interest rates on Wednesday and last year, the Banca del Japan concluded a huge program of economic motivation which lasted a contract and increased interest rates at 0.5 percent in January among the expectations that Japan is heading to achieve its inflation objective in a sustainable way.
The political managers of the Banca del Japan have indicated their will to continue increasing interest rates if they have a conviction that the country will witness stability in the inflation rate near Monday, with the support of the strong increase in wages.
In the markets, the Japanese Topix index has risen to the highest level in eight months of Friday; Banking actions obtained earnings after the inflation data that have passed the expected, but have lost most of their earnings to the closure due to concerns about the impact of American customs duties.
The wider topics index increased by 0.29 percent to 2804.16 points, the highest closed level from 23 July and increased to the seventh consecutive session in the longer earnings series since January 2024.
The Nikki index canceled the profits before to close 0.2 percent to 37677.06 points. The index increased by 1.89 percent during the week.
“Investors have sold some titles to look for if the American market will be witnessed on the second half,” said Yugo Tsopoy, a Dawa Securities analyst. They will be concerned about the policy of the President of the United States Donald Trump on customs duties next week.
