japans new economy minister called on companies to consider higher pay increases ahead of annual wage negotiations next spring it is very important to realize sustainable wage increases that can sufficiently cover the rise in prices shigeyuki goto said in a group interview on wednesday with the wall street journal and other publications i understand that concerns are growing over consumption because increases in international raw material prices and the cost of imports caused by the yens weakness have contributed to the decline in real incomes he added japanese companies and labor unions hold annual wage negotiations ahead of the april start of each fiscal year according to most recent data from the ministry of health labor and welfare real wages adjusted for inflation declined 13 in september consumer inflation has reached 3 in japan due mainly to higher energy prices the bank of japan plans to stick with its ultraeasy monetary policy because it expects inflation will fall below its 2 target next year in late october prime minister fumio kishida released a new economic package worth 39 trillion yen 268 billion to cushion the impact of price increases the package included support for household electricity bills extension of subsidies for oil wholesalers to lower gasoline prices and incentives for companies that raise wages mr goto also said wednesday it was important for japan to take advantage of the yens depreciation he said that would include inviting more investments because the yens weakness has made it less costly to build production sites in japan the yen has weakened more than 25 against the dollar this year due to widening interestrate differentials between japan and the us where the federal reserve is rapidly increasing rates to fight a surge in inflation mr goto took the post in late october after his predecessor daishiro yamagiwa stepped down amid public criticism over his ties with the unification church which has come under scrutiny since former prime minister shinzo abe was assassinated in july the suspect in the case has said he wanted to target the church and believed mr abe had links to it