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Wary of a new round of deflation, Abe to delay Japan's sales tax hike

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Prime Minister Shinzo Abe, left, greets economist Paul Krugman at a meeting in March. Krugman urged Japan to postpone its next tax hike, planned for April 2017.   © Reuters

TOKYO Japanese Prime Minister Shinzo Abe has decided to postpone a consumption tax increase that was planned for next April, judging it to threaten efforts to pull the world's third-largest economy out of deflation.

Abe is expected to announce the delay after further consideration, including talks with fellow Group of Seven leaders at a summit in Japan later in the month.

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