TOKYO, Jan 21 (Reuters) – 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% 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% 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%, the biggest in 34 years.
(Reporting by Makiko Yamazaki; Editing by Christopher Cushing)
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