This can be regarded as a step toward transferring to a new social economic system in which a 2 percent price increase is built in as a social norm, and this deserves focused attention.
The extent to which nominal wages will increase in excess of inflation, or in other words, the extent to which real wages will increase, will hinge over time on the extent to which labor productivity – the amount of goods and services produced by an input of one unit of labor – will increase.