Japan Press Weekly

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2023 January 11 - 17 [POLITICS]

Wage hikes and lower sales tax rates are specific remedies for surging prices

Japanese Communist Party Secretariat Head Koike Akira at a press conference in the Diet building on January 10 said, "Our party will keep demanding that the government reduce the consumption tax rate since this is the quick-impact remedy to counteract surging prices."

Asked by reporters for comments on the increase of 4.0% in the consumer price index (CPI) in Tokyo's 23 wards last December, Koike said, "The situation is very serious. The Japanese economy will further deteriorate without the immediate introduction of effective measures."

Koike pointed out that despite the price rise in commodities, workers' wages have shown a decrease in real terms for eight straight months.

He said, "Prime Minister Kishida Fumio is asking the financial world for pay hikes, but 'asking' doesn't mean that he has fulfilled his political role. Concrete measures to ensure wage hikes which will exceed the level of the price rise are necessary."

According to the CPI in Tokyo's 23 wards in December 2022 published on January 10 by the Ministry of Internal Affairs and Communication, the overall index including perishable foods went up by 4.0%. The CPI for foods excluding perishable foods rose by 7.5%, and for city gas rates and electricity rates up by 36.9% and 26.0%, respectively.