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's Maritime Self-Defense Force said Monday that a crewman of a destroyer killed himself after being bullied by his superior, a 42-year-old petty officer first class, since October 2013. (Jiji Press)
Nineteen more people were confirmed by the health ministry on Monday to have contracted dengue fever in Tokyo, following three last week and bringing the total number to 22 in the first cases of domestic infection in Japan since 1945. (Nikkei)
Hokkaido Prefectural Police on Monday accused a restaurant in Chuo Ward of violating labor laws by attiring waitresses under the age of 18 in bikinis, reports the Hokkaido Shimbun (Sept. 2). (Tokyo Reporter)
The Tokyo District Public Prosecutors Office on Monday decided not to indict Torao Tokuda, former head of hospital group Tokushukai, over a high-profile election fraud case, because he is seriously ill. (The Japan News)
A two-day festival to highlight the charm of Japan's Tohoku region started in a park in front of the Eiffel Tower in Paris on Saturday morning to help reconstruction of the region devastated by the massive earthquake and tsunami some three years ago. (Jiji Press)
The body of a Japanese man was found floating in the Hudson River last week and may have been shot in the head, according to the New York City Police Department and Consulate General of Japan in New York. (Japan Times)