Japan govt. white paper warns of economic risk from US tariffs
The government on Tuesday released its annual white paper on the economy and public finance for the current fiscal year through March.
The document says the virtuous cycle of prices and wages rising together is starting to take root.
It points out that this year's spring labor talks led to the biggest wage hikes in 34 years and businesses are passing on higher costs in product prices.
But the paper warns the economy could slip back into deflation because wages are not rising fast enough to keep up with inflation and US tariffs add a new risk.
The white paper says further work is needed to balance efforts to revitalize the economy with fiscal health.
It says supplementary budgets for the past five fiscal years totaled about 170 trillion yen, or more than 1.1 trillion dollars.
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