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Comment by victoro | Hacker News Reader

> calls by Prime Minister Fumio Kishida for Japanese companies to pay workers more as inflation takes hold

So the prime minister wants to fight a phenomenon caused (in large part) by a wage price spiral by calling for accelerating the wage price spiral... we're in for a fascinating macro-economic/political landscape these next couple years...

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Japan’s current inflated prices are more visible on gas and electricity which increased by 25~30% in just a few months, and are planned to increase again in the summer.

The PM is basically asking companies to foot the bill for energy costs, which have little to do with wages.

Food has been increasing too. It’s actually more visible to me that my ¥600 cereal is now ¥750.

Imported goods have been directly affected by the usd/eur/jpy exchange rate, so yes they rose too. Exchange rate has been slightly going down, so there’s a modicum of hope in this regard.

If you’re not increasing the money supply, do you still get inflation or is this just shifting money from owners to workers?

So, 4% incrises in average prices cause by the sour of gas prices and comoditiess, means employees cause the inflation. Or b what he wants is the distribution of the Cost of being share between companies and employees.

The inflation Japan is experiencing has not been caused in large part by a wage price spiral. It has largely been caused by US and Japanese monetary policy being out of sync.

Japan has desperately wanted inflation for decades. Not obvious it’s enough to get people to spend more and save less

> (in large part)

Cost of raw material going up (largely due to moving resource extraction away from slave labor) is a much bigger driver of inflation than wages. If 10% of a product's price is to pay for the overhead of personnel costs, a 10% wage increase only increases the price of the product 1%.

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