Growth in retail sales slowed in August as higher prices of daily necessities discouraged consumers from spending.
Sales climbed 0.7 percent from a year earlier after rising a revised 2 percent in July, the Ministry of Economy, Trade and Industry said Monday.
The median estimate of 18 economists surveyed by Bloomberg was for a 0.2 percent gain.
The fastest inflation in a decade is forcing consumers to tighten their purse strings as costlier food and gasoline leave them less to spend on nonessentials. Some economists say Japan is already in a recession and the slowdown may deepen as consumers cut back and exports wane.