According to Japan's Ministry of Economy, Trade and Industry (METI), retail sales in Japan declined at an annual rate of 1.1% in December, missing expectations for a 0.1% fall, after a 1.0% drop in November. It was the second consecutive monthly drop.

The decline was partly driven by lower fuel, and cars sales. Fuel sales slid 16.4% year-on-year in December, while car sales dropped 2.1%.

On a monthly basis, retail sales were down 0.2% in December, after a 2.5% decrease in November.