Even so, Japan has undeniably moved closer to what former Prime Minister Fumio Kishida has called a “virtuous cycle of wages and prices”. Together, nearly half of workers hold an optimistic view of their real wage prospects. By contrast, 51% expect real wages to decline, resulting in a roughly even balance between optimism and pessimism. Without confidence in sustained real wage growth, Japan’s inflationary transition risks remaining incomplete. Without a credible, sustained path to real wage growth, inflation may fuel social and political tensions rather than drive economic revival.

Source: The Star February 11, 2026 01:27 UTC