Japan's ruling parties broadly agreed Thursday to exempt food products from the planned consumption tax hike in 2017, lawmakers said, in an attempt to ease the burden on consumers as slow growth in household spending has weighed on the economy.

All fresh and processed foods will remain subject to the current 8 percent tax even after the rate is raised to 10 percent in April 2017.

But the arrangement will reduce state revenue by some ¥1 trillion ($8.2 billion) annually, forcing the government to find other sources to cover the loss at a time when welfare spending is increasing due to the country's graying population.