Biggest challenge for Japan is lack of wage growth Kihara
Govt will increase focus on achieving wage growth Kihara
Remarks echo BOJ39;s view wages must rise for sustained growth

TOKYO, Dec 28 Reuters Japan39;s government will make raising wages a top priority in its economic policy next year, Deputy Chief Cabinet Secretary Seiji Kihara said on Wednesday.

The biggest challenge for Japan39;s economy is a lack of wage growth. Unless wages rise, consumption won39;t pick up and companies won39;t increase investment, Kihara said, speaking during a television programme.

While companies are responsible for deciding how much they hike pay, the government can help achieve higher wages through tax incentives, Kihara said. The government can also prod firms to disclose more information on how much they are spending on human resources, he said.

The remarks echo those of Bank of Japan BOJ Governor Haruhiko Kuroda, who has stressed that achieving higher wages would be crucial for the economy to sustainably achieve its 2 inflation target, driven by strong domestic demand.

The government will increase its focus on achieving wage growth. This is particularly important because prices are rising, Kihara said.

Prime Minister Fumio Kishida39;s administration has seen approval ratings plunge due in part to worries over the rising cost of living, as recent sharp yen falls boosted the cost of importing already expensive raw materials.

The government39;s concern over yenweakening…