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Reflation attempts gaining traction in Japan

Data suggests wage and income dynamics are improving even as inflation turns slightly positive

Japan "is in a demographic sweet-spot where the shortage of labour is raising the quality of employment as well as aggregate incomes," says a veteran analyst.


THE first signs that Japan's attempts to reflate the economy may be gaining traction have appeared with the news that "real" (inflation adjusted) wages rose at their fastest rate in 17 years in May.

Though modest, the gains represent good news...