More signs Abenomics is working as Japan prices, output rise
Reuters -- Aug 30
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.
US President Barack Obama has left the United States for his first trip to Japan in about 3-and-a-half years. Obama and Japanese Prime Minister Shinzo Abe will hold a summit meeting on Thursday. (NHK )
The education ministry conducted national academic achievement tests on Tuesday for all final-year students at primary and middle schools across the country. About 2.24 million students at about 30,000 schools took Japanese and mathematics exams. (The Japan News )
Japan and the United States are now seen deferring a broad trade agreement until after a summit meeting set for Thursday due to differences over key issues, informed sources said Tuesday. (Jiji Press )
The virus strain that caused bird flu at a poultry farm in southwestern Japan has been confirmed to be genetically identical to the one found in South Korea, the National Institute of Animal Health said Tuesday. (Jiji Press )
Airport authorities in Tokyo launched a frantic scramble to change security pass codes, an official said Tuesday, the day before U.S. President Barack Obama arrives, after an airline employee dropped a memo containing the details. (Japan Today )
The Imperial Household Agency announced this week that it has received over 100,000 applications from individuals seeking to participate in the first ever public opening of parts of the Imperial Palace. (Japan Today )
A former judge from the Ministry of Justice is alleged to have installed a camera inside a women's toilet inside a ministry building in Kasumigaseki, people with knowledge of the matter announced on Monday, reports Sports Nippon (Apr. 22). (Tokyo Reporter )
Police in Fuso, Aichi Prefecture, said Sunday they have arrested an unemployed 38-year-old man for attempted murder after he broke into the home of his ex-girlfriend and stabbed her and her parents. (Japan Today )
Feeding black-tailed gulls has been a popular activity on the sightseeing boats that cruise around the Matsushima islets, considered to be one of the three most beautiful spots in Japan, but local authorities banned the practice this month in a bid to protect the islets' famous pine trees from withering as a result of nitrogen in the droppings of the gulls, who have bred in large numbers in the area. (The Japan News )