Japan's biggest railway company raises fares

Japan's biggest railway company raised its fares by an average 7.1 percent on Saturday. It is East Japan Railway's first across-the-board fare increase since it was privatized in 1987, apart from rises due to consumption tax hikes.

One reason for the increase is the rising cost of labor. JR East says subcontractors have been raising wages to secure skilled workers. East Japan Railway President and CEO Kise Yoichi explains that the fare increase was necessary to pass on to future generations a safe and high-quality railway service. He said the company wants the railway to be resilient against natural disasters and to give passengers a sense of reassurance.