Japan finmin: economic data show favourable trend for sales tax hike

TOKYO Thu Aug 29, 2013 10:14pm EDT

TOKYO Aug 30 (Reuters) - Japanese Finance Minister Taro Aso said on Friday that a series of economic data issued earlier in the day presented a favourable economic trend towards a sales tax hike planned for next April.

Japan's core consumer inflation rate accelerated to its highest in nearly five years in July and factory output rebounded smartly, suggesting that government and central bank efforts to end deflation are making some progress.

"Taken together, these data suggest the economy is in an uptrend, and the numbers will affect environment for the sales tax hike," Aso told a news conference after a cabinet meeting.

Aso also said failure to raises the sales tax would be seen as that Japan has no intention of proceeding with fiscal consolidation and therefore could lead to a plunge in share prices and government bonds.

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