New Sales Tax Sends Tokyo’s ’89 Consumer Prices Up 2.7%

TOKYO —  Consumer prices in Tokyo in 1989 posted the highest year-on-year rise since 1986, the government’s preliminary figures showed Tuesday.

Japan also reported that its nationwide unemployment rate remained at a stable 2.2% in November.

The Management and Coordination Agency said Tokyo’s consumer prices in 1989 rose 2.7% over the previous year, surpassing a 2.0% year-on-year rise for the first time since 1986.

The agency said the rise was owed chiefly to the introduction in April of the 3.0% sales tax, Japan’s first such levy.

Food prices increased 2.8%, rents were up 3.2%, clothing costs jumped 5.5% and education expenses increased 3.1%, the agency said.

The agency said consumer prices in December increased 0.1% over November.

The agency said Tokyo’s consumer price index for 1989 stood at 106.1 against the 1985 base of 100.

The nationwide consumer price index for November stood at 104.5, up 2.3% over a year ago, the agency said.

The agency said Japan’s unemployment rate in November stood at 2.2% after seasonal adjustments, down 0.1 point from October.

The jobless rate remained stable for the past six months, ranging from 2.2% to 2.3%.

The number of unemployed totaled 1.33 million, including 790,000 men and 540,000 women, the agency said.