Wakatabe: Sales tax hike the main reason Abenomics faltering, not yet defeated deflation

Professor of Economics at Waseda University in Tokyo, Masazumi Wakatabe, writing in the Financial Times.

He is more positive on inflation in Japan:

• As the FT correctly observes, if one uses the standard definition of core CPI, "Japan's CPI has been growing at between 0.5 and 1 per cent, well above its previous rate".

(ps. I make the point on how Japan's definition of core CPI differs from how nearly everywhere else defines it quite regularly, here most recently for example)

He also has an observation on the sales tax hike, saying Abenomics strayed from its reflationary emphasis by hiking the tax in 2014:

• it should be noted that the transformation of Abenomics from expansion to austerity in the form of the consumption tax increase in April 2014 is the main reason why Abenomics is faltering and has not yet defeated deflation.

There is more at the FT, which may be gated: Look for redistributive detail in Abenomics