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.
Japan will set up a new amphibious military unit and deploy unarmed surveillance drones in its southwest, where it faces a row with China over disputed islands, according to drafts of the nation's latest defence plans seen on Wednesday. (Reuters )
A total of 198,108 cases of bullying were recognized at schools in Japan in fiscal 2012 that ended in March, up 2.8-fold from the previous year and the highest figure since the survey began in 1985, the education ministry said Tuesday. (Jiji Press )
Ending radioactive water leaks along with groundwater and ocean contamination at the wrecked Fukushima nuclear plant in Japan may take more than five years, according to a report by a government advisory body. (Bloomberg )
A 43-year-old woman and other six boys and girls aged 14 to 18 years have been arrested by police in the western Japanese prefecture of Hyogo in connection with the abuse of a 15-year-old junior high school student, local press reported on Tuesday. (Global Times )
On November 30, officers from the Shizuoka Prefectural Police arrested Hitomi Sugawara, a part-time music teacher at elementary schools in Tokyo, for appearing in an adult video (AV) uploaded to an overseas Internet site. (Tokyo Reporter )