TOKYO, Jul 14 (News On Japan) - A recent survey by the Japan Association of Corporate Executives (Keizai Doyukai) has revealed that business leaders view wage hikes as the most effective policy response to rising prices, ahead of the July House of Councillors election. The findings reflect growing concern among corporate executives about the impact of inflation outpacing wage growth, and highlight a preference for structural solutions over short-term subsidies.
When asked to evaluate the current Ishiba Cabinet, only 1.5% of respondents said they "highly approve," but a majority—54.9%—said they "somewhat approve," indicating moderate but overall positive support among the business community.
Regarding the most important policies for the upcoming election, the top response was the presentation of a national vision outlining Japan’s long-term direction. This was followed by calls for fiscal consolidation, social security reform, and improvements in foreign and security policy.
On the drivers of inflation that have outpaced wage growth, 39.3% cited "yen depreciation and rising energy prices," while 32% pointed to "increases in raw material and logistics costs," showing that many view external and supply-side factors as the primary culprits.
As for policy responses to inflation, the most frequently chosen measure by far was "promotion of wage increases." This was followed by support for reducing the burden of social insurance premiums, lowering income and resident taxes, subsidizing public utility costs such as gasoline, electricity, and gas, and cutting the consumption tax rate.
Source: FNN
