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Japan will speed up deployment of government cash in coming months as a surprise drop in consumer spending in February triggered concern the nation’s long-awaited inflation is now damaging purchasing power.

Finance Minister Taro Aso told reporters that data showing a slump in household expenditure two months before the first sales-tax increase since 1997 was a problem, and Prime Minister Shinzo Abe’s administration will pour 40 percent of outlays for the next fiscal year into the April-June quarter. He’d already pledged to fast-track stimulus spending.

Data today also showed inflationary pressures are spreading even before the 3 percentage-point sales-tax increase take effect on April 1, as the price of durable goods soared the most since the early 1980s.

http://www.bloomberg.com/news/2014-03-27/japan-inflation-unchanged-in-february-before-sales-tax-increase.html

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