IMF urges Japan to avoid lowering consumption tax

WASHINGTON - Japan should avoid lowering the consumption tax, the International Monetary Fund said Tuesday, cautioning that such an "untargeted measure" to deal with the rising cost of living could further deteriorate the country's fiscal health.

The warning came as Japanese Prime Minister Sanae Takaichi aims to suspend the 8 percent tax on food and beverages for two years, after her ruling party's historic election win earlier this month.