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31.03.202600:24:11UTC+00Japan Retail Sales Unexpectedly Drop

Japan’s retail sales slipped 0.2% year-on-year in February 2026, reversing January’s 1.8% increase and falling short of market expectations for a 0.8% rise. The data underscore persistent pressure from higher costs despite recent fiscal support from the government in Tokyo.

By category, sales declined in fuel (-14.1%), non-store retailing (-4.2%), and clothing and personal goods (-3.1%). These drops were offset in part by gains in other retail goods (4.0%), automobiles (3.8%), pharmaceuticals and cosmetics (3.7%), department stores (1.9%), machinery and equipment (1.6%), and food and beverages (0.8%).

On a month-on-month basis, retail trade fell 2.0%, giving back a downwardly revised 3.0% increase recorded in January.

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