Friday, 30 August 2013

Japanese consumer prices and industrial production rise, US growth revised up

Japan's economic recovery appears to be back on track, with even inflation making a return, according to data released on Friday.

Core consumer prices, which exclude fresh food prices, rose 0.7 percent in July from the previous year, the biggest increase since November 2008.

Industrial production rebounded 3.2 percent in July after falling 3.1 percent in June while the unemployment rate fell to 3.8 percent from 3.9 percent in June.

Household spending rose 0.9 percent in July.

The positive data from Japan follows an upward revision to second quarter US GDP growth on Thursday. The US economy is now estimated to have grown at an annual rate of 2.5 percent, up from an initial estimate of 1.7 percent.

Thursday had also seen another emerging economy central bank tighten monetary policy following recent turbulence in emerging markets. In an extra policy meeting on Thursday, Bank Indonesia announced a 50-basis-point hike in its key interest rate to 7.00 per cent, its third hike in three months.

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