Japan is escaping deflation, the government said on Friday as data showing rising prices, falling unemployment, higher incomes and factory activity gathering momentum pointed to an ongoing recovery in the world's third-largest economy.
Prime Minister Shinzo Abe and the Bank of Japan have gambled on massive fiscal and monetary stimulus to spark life into the economy, and the accumulating signs of an upswing are seen strengthening the case for a planned sales tax increase.
Friday's data painted a brightening picture for a country seeking to escape 15 years of debilitating deflation: core consumer prices posted their biggest rise in nearly five years, unemployment fell to its lowest since late 2008, factory output rose and is expected to rise further, and workers' incomes rose.
"Japan is escaping from deflation," Economics Ministers Akira Amari told reporters.
Pessimists have argued that the benefits of "Abenomics," a three-pillar strategy of fiscal and monetary stimulus combined with a long-term growth strategy, may be short-lived and won't prompt companies to spend more on investment and wages.
And while the rise in prices has been driven largely by higher electricity bills and a weaker yen that has pushed up import costs, the job market strength and rising incomes bode well for personal consumption, which has been a key driver of the recovery.
A woman in her 20s who was bitten by a mosquito in Ueno Park in Tokyo's Taito Ward earlier this month has been confirmed infected with dengue fever, the Tokyo metropolitan government said Friday. (The Japan News)
Researchers who measured the slipperiness of banana peels, the ability of pork strips to stop nosebleeds and the reactions of reindeer to humans in polar bear suits were among the winners of this year's Ig Nobel prizes for comical scientific achievements. (Japan Times)
A 61-year-old truck driver has been arrested after he hit a group of elementary school children in Setagaya Ward, Tokyo, killing one 9-year-old girl and injuring two other children, aged 8 and 9. (Japan Today)
Following the bust of a shopping site selling shoes containing a miniature camera used to take illicit photographs, Kyoto Prefectural Police are now seeking the return of the merchandise from customers, it was revealed on Tuesday, reports the Mainichi Shimbun (Sept. 17). (Tokyo Reporter)
Japanese Emperor Akihito and Empress Michiko may visit Palau next year, the 70th anniversary of the end of World War II, to pay their respects to Japan's war dead, Chief Cabinet Secretary Yoshihide Suga said Tuesday. (Jiji Press)
A car was partially buried due to small mudslide and three people sustained injuries after a magnitude-5.6 quake hit a wide area of Kanto region in Japan around noon on Tuesday, according to local report. (shanghaidaily.com)