Minimum wages rise in Japanese prefectures amid soaring prices

A majority of Japanese prefectures started Sunday to implement an increase in minimum wages as the country grapples with surging prices.

Japan's prefectures each set their own minimum wage every year, with the new rates adopted around October in line with the target set by a labor ministry panel.

The national average hourly wage will rise to 1,004 Japanese yen (about 6.7 US dollars), which will translate to a hike of some 30 cents over last year, national broadcaster NHK reported on Sunday.

Tokyo announced the highest hourly wage level at 1,113 yen (7.4 dollars), while Iwate prefecture has the lowest at 893 yen (about 6 dollars).

Some small and mid-sized firms said they find it hard to keep up with the hike, while workers say the wage hike is not enough to offset ever-rising prices, according to the report.

The latest government data showed that Japan's core consumer prices increased for the 24th month by rising 3.1 percent year on year in August, remaining above the Bank of Japan's 2 percent inflation target for the 17th month.

Analysts here pointed out whether a virtuous cycle with higher wages can be created will determine prices and the Japanese economy, as the country's current wage increase has not kept up with the soaring prices in the country.