Reflation attempts gaining traction in Japan

Tokyo

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 for embattled Japanese Prime Minister Shinzo Abe whose economic growth policies known as Abenomics have become tarnished, especially with what many say is the over-ambitious target of achieving 2 per cent annual inflation.