Japan's top labour union group urges government to stabilise forex
Tomoko Yoshino, President of the Japanese Trade Union Confederation, commonly known as Rengo, delivers a speech during their annual May Day rally to demand higher pay and better working conditions, in Tokyo, Japan April 29, 2023. REUTERS/Issei Kato
TOKYO, Jan 21 : The chief of Japan's largest trade union umbrella group Rengo on Wednesday pressed the government to steer economic policy toward stabilising foreign exchange rates, saying that the weak yen is accelerating inflation through higher import costs.
The yen has sank against major currencies due to concern over Japanese Prime Minister Sanae Takaichi's dovish fiscal policy. It hit an 18-month low of 159.45 per U.S. dollar this month, its weakest since Japan last intervened in support the currency in July 2024.
"We believe that the yen's current depreciation is fuelling inflation through (higher) import costs," Tomoko Yoshino, the chief of Rengo, said in a group interview.
"We'd like to call on the government to conduct macroeconomic management that stabilises prices and exchange rates," she said, noting that prices continue to run above the 2 per cent inflation target set by the government and the Bank of Japan.
Rengo, a 7 million member-strong union umbrella group, has set a target of 5 per cent or more for the 2026 spring pay talks, which typically conclude in mid-March. Last year, Rengo member unions secured an average wage hike of 5.25 per cent, the biggest in 34 years.
