TOKYO -- Japan's industrial output edged higher in December, suggesting the world's third-largest economy may be turning the corner on a recession brought on by a hefty sales tax increase.
Data released Friday showed manufacturing output increased 0.3 percent in December from a year earlier and by 1 percent from the month before. However, inflation moderated to 2.5 percent from a year earlier, compared with 2.7 percent for November. The core consumer price index, excluding food, fell 0.2 percent from the month before.
Falling energy costs thanks to the plunge in oil prices is countering that trend. But lower oil prices have had a limited effect on the economy so far, since the consumer price index excluding food and energy was unchanged from the previous month.
Meanwhile, Japan's jobless rate dipped to 3.4 percent from 3.5 percent the month before. But stagnant wages meant household spending dropped 3.4 percent from a year earlier.
When the impact of a 2 percentage point increase in the sales tax in April is excluded, Japan's inflation rate was well below the 2 percent target set by the government and the central bank.
SundayMonday Business on 02/01/2015