Japan Inc.'s Big Profits Didn't Translate to Wages

The video discusses the annual wage talks in Japan, known as 'shonto', which are backward-looking, considering last year's economic conditions like deflation and currency changes. Despite a positive wage increase, it's lower than the previous year due to deflation and a strong yen. This situation is unlikely to boost consumer spending significantly, as predicted inflation and wage raises are minimal, making it a challenging year for consumers.

How is the fluctuation of the yen expected to affect consumer spending?

What predictions did The Economist make regarding inflation and its effect on consumers?