Japan inflationary ‘growth’ hailed as cost of living goes up

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

TOKYO, September 9, 2013 (AFP) – Japan’s economy in the April-June quarter expanded more than initially estimated, revised data showed Monday, offering another boost for Tokyo’s bid to reverse years of tepid growth. The Cabinet Office put second-quarter growth at 0.9 percent from the previous quarter, up from a preliminary reading of a 0.6 percent expansion.

The government also boosted the annualised growth figure to 3.8 percent from the first estimate of 2.6 percent. Annualised figures show the rate of growth if the data was stretched across an entire year.

The upward revision came as the government considers whether to go ahead with a planned sales tax hike that many fear could derail a budding recovery in the world’s number-three economy. Last week, the Bank of Japan upgraded its assessment of the long-lumbering economy, saying a recovery was firmly under way.

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