2015-12-29telegraph.co.uk

The last sales tax increase threw the world's third largest economy into recession. For this reason, things may start getting more complicated at the checkout. Policymakers announced last week that they plan to exempt food from the next hike. This would be the first time Japan has adopted different consumption tax rates since it was introduced in 1989.

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It's been three years since prime minister Shinzo Abe took power with a promise to smash deflation and "take back Japan"... As economists at BNP Paribas highlight, real gross domestic product (GDP) has grown by just 2.2pc between the fourth quarter of 2012 and the third quarter of this year - or an average of just 0.8pc per year - a poor performance compared with its G7 peers.

... [The BOJ] also pushed back its expectation of achieving 2pc inflation to the second half of the year or early 2017, from a previous forecast of mid-2016. This is the second time the target date has been moved since Mr Kuroda pledged in April 2013 to lift consumer inflation to 2pc in "around two years".



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