Prime Minister Fumio Kishida on Thursday called for business leaders to accelerate wage rises, warning that the economy risks falling into stagflation if pay rises lag price increases.
"There are alarm bells warning that stagflation emerges if wage growth lags behind price hikes," Kishida told a New Year's gathering of three major business lobbies.
Stagflation is a combination of a low economic growth and surging inflation, damaging households' purchasing power.