Fukuda urges firms to raise pay

Japan's corporations should share more of their profits with workers to help them deal with the rising cost of living, Prime Minister Yasuo Fukuda said in a weekly e-mail newsletter on yesterday.

After years of deflation, Japanese consumers have been hit hard by ballooning fuel and food prices, while weak wage growth has helped keep consumer spending sluggish.

Annual consumer price inflation is running at its highest in a decade, meaning industry is likely to come under pressure to raise salaries in annual pay negotiations held each spring.