Japanese incomes projected to increase by 3.8% in fiscal 2024, surpassing inflation

<p>The Nikkei (Japan media outlet) have a sneak leak of a Japanese Cabinet report due today, Thursday, 21 December 2023, that shows Japanese incomes will rise faster than inflation in fiscal 2024.</p><p>Saying its a hopeful sign for consumers even if much of the anticipated boost comes from one-time tax cuts.</p><p>Cabinet Office forecast:</p><ul><li>
Per-capita income will increase by 3.8% (1.3% from tax cuts, the balance from wage rises that are barely above FY 2023) next year on a combination of lower taxes and higher wages</li><li>Inflation is expected to be in the mid-2% range for fiscal 2024, which begins in April.
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Also from the Nikkei today – the draft budget for the new fiscal year beginning in April that will reduce government spending for the first time in 12 years</p><p>—</p><p>Its difficult to see the Bank of Japan falling over themselves to tighten policy with that backdrop. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.