Japan shifting to wage-driven inflation phase, finance minister says

TOKYO, Oct 21 (Reuters) - Japan’s economy is seeing price rises driven by higher import costs and on the cusp of shifting to a period of sustained inflation driven by rising wages, Finance Minister Satsuki Katayama said on Wednesday.

The government’s scheduled consumption tax cut and payouts are aimed at cushioning the blow to households from rising living costs, Katayama told parliament.

"We are exchanging views with the Bank of Japan on various fronts. I see no gap between the view of the government and that of the BOJ," Katayama said when asked by a lawmaker whether the government’s tax cut plan could conflict with the central bank’s efforts to combat inflation with interest rate hikes.