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.
Japan will impose additional sanctions on Russia for failing to defuse the crisis in Ukraine, where the recent downing of a Malaysia Airlines jet killed all 298 people aboard, the government said Monday. (Kyodo)
Grand champion Hakuho defeated his Mongolian compatriot, Harumafuji, on Sunday to win his 30th career title at the Nagoya Grand Sumo Tournament, edging closer to the all-time championship record in Japan's ancient sport.
Eleven people died, one person remains unconscious and two are missing after water-related accidents across Japan over the weekend, police and Fire and Disaster Management Agency officials said Monday. (Japan Today)
The results of a poll to pick the 16 singers who will perform on the next single by SNH48, the Shanghai-based sister group of the hugely popular all-female pop group AKB48, were released over the weekend at an event that drew more than 3,000 fans. (Japan Times)