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TOKYO - Japanese Prime Minister Fumio Kishida will issue an order on Monday for the government and the central bank to conduct an assessment on whether recent wage hikes would be sustainable, the Nikkei newspaper reported on Sunday.
The assessment will focus on whether wealth is distributed in a way that allows households to weather the rising cost of living, and help sustainably achieve the Bank of Japan's 2% inflation target, the paper said without citing sources.
Kishida will issue the order at a meeting of the government's key economic council on Monday, and will consider having the council conduct a regular assessment on the wage outlook, the Nikkei said.
The assessment will seek to clarify the role the government and the BOJ must play in achieving 2% inflation, and how they should respond when inflation accelerates, the paper said.
Japan's core consumer inflation hit 3.1% in March, well above the BOJ's 2% target, as companies pass on rising raw material costs to households.
BOJ Governor Kazuo Ueda has said the central bank will maintain ultra-low interest rates until the recent cost-push inflation shifts into sustained price growth driven by robust domestic demand, and accompanied by higher wages.
(Reporting by Leika Kihara, Editing by Franklin Paul)