Japan retail sales fell more than expected in December, with data suggesting that sluggish household spending will keep fourth-quarter economic growth subdued.
While analysts expect the Bank of Japan to hold off on any more monetary easing at its latest rate review, the weak data is expected to keep policy-makers under pressure to do more to help the fragile economy recover.
Retail sales fell 1.1 per cent for the month compared with the previous December to mark the second straight month of declines, trade ministry data shows.
“It seems households are tightening their purse strings because of rising food costs,” says SMBC Nikko Securities chief economist Junichi Makino.
Japan’s economy has emerged from recession, but growth remains subdued with sluggish demand and a slow rate of growth rate for wages.