[1/6] A chef cooks tofu as he prepares a dish before the opening for dinner hour at Ukai, a traditional Japanese restaurant, in Tokyo, Japan, July 6, 2023.
"There's no doubt rising wages and bonuses are among factors prodding customers to come dine with us despite the price hikes," said Ukai manager Yuka Hoshino.
It is also drawing the attention of the Bank of Japan (BOJ), which is shifting away from its view the recent cost-driven inflation will prove temporary.
"Japan is seeing early signs of progress in achieving inflation accompanied by higher wages," another source said, a view echoed by two more sources.
The BOJ is changing its tone on the drivers of inflation and how they see progress made in sustainably hitting 2% inflation.
Persons:
Kim Kyung, Hiroki Wakita, Yuka Hoshino, Kazuo Ueda, Teikoku Databank, Akihito Sato, Shohei Kanai, Ryozo Himino, Seisaku Kameda, Tetsushi Kajimoto, Sam Holmes
Organizations:
REUTERS, Reuters, Bank of Japan, Research, Workers, Thomson
Locations:
Tokyo, Japan, TOKYO, French, Ginza