Japan has moved one step closer to raising its minimum wage following an agreed proposal to increase hourly salaries by 3.3% to ¥961 ($7.30) as the country tries to cope with rising inflation and the cost of living crisis.

As with the rest of the world, Japanese consumers are facing higher prices for goods and services primarily due to surging import costs driven by high crude oil prices and fact that the country has yet to completely exit from long-lasting deflation.