Japan's industrial output edged higher in December, suggesting the world's third-largest economy may be turning the corner on a recession brought on by a hefty sales tax hike.

Data released Friday showed manufacturing output increased 0.3 percent in December from the same month a year earlier. However, inflation moderated to 2.5 percent from a year earlier, compared with 2.7 percent in November.

The core consumer price index, excluding food, fell 0.2 percent from the month before.

Falling energy costs thanks to the plunge in oil prices had a limited effect, since the CPI excluding both food and energy was unchanged from the previous month.

Japan's jobless rate dipped to 3.4 percent from 3.5 percent the month before. But stagnant wages meant household spending dropped 3.4 percent from a year earlier.