[krazii]

I thought raising wages was not what you want to do to fight inflation?

[bloodyplonker22]

It's just another basic economic effect of having too much money supply in the system. Governments printing too much money at a fast rate is the core reason of why inflation happens.

[mempko]

Raising wages doesn't increase inflation, it's raising prices to customers.

[astrange]

Raising wages _can_ increase inflation because the workers will use them to buy more goods, which might be supply limited.

But Japan's inflation problem is that they don't have enough of it, so that's fine…

[mempko]

Right, but limited supply doesn't have to mean raising prices. That decision is done by management and business owners. It's not an automatic kind of outcome, but a deliberate one.