The latest set of economic indicators released on Friday offer a favorable condition for a positive sales tax decision by the government, Japanese Finance Minister Taro Aso reportedly said.
Today's data showed that's the core consumer price inflation rose to its highest level since 2008 in July and industrial production rebounded sharply. Unemployment declined and household spending increased, figures showed.
A private purchasing managers' survey of the country's manufacturing sector showed that business activity has improved at a faster pace in August.
A government panel is holding discussions with business leaders and experts to study the effect of the planned two-stage hike in sales tax on the economy. The panel will submit its findings before Prime Minister Shinzo Abe, who will then take a final decision on whether to go ahead with the tax hike.
The government has proposed to increase the sales tax to 8 percent in April 2014 and then to 10 percent in October 2015 from the current 5 percent.
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May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.