CHART OF THE DAY: Japan's Ambitious Economic Experiment Is Working

Earlier today, we learned that Japan's core consumer prices, which excludes fresh food, climbed 0.7% in July. This was up from 0.4% in June and a bit higher than the 0.6% expected.

According to Bloomberg, this was the fastest pace of price increases since 2008.

"Japan is escaping from deflation," said Economics Minister Akira Amari.

All of this comes as Prime Minister Shinzo Abe pushes his ambitious economics plan, aka Abenomics. Efforts include unprecedented amounts of financial easing via the Bank of Japan.

The uptick in prices suggests that Abenomics is working.

Shortly after the inflation stats were released, we learned that Japan's unemployment rate fell to 3.8% in July, down from 3.9% in June. This was the lowest reading since October 2008.

"Japanese industrial production and labour market figures suggested a firm recovery and consumer prices added to evidence that deflation is finished, certainly for now," wrote Societe Generale's Takuki Alda and Kiyoko Katahira.