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Retail sales in Japan advanced by 3.9% year-on-year in January 2025, up from a downwardly revised 3.5% growth in December 2024, slightly below market expectations of a 4% rise. This marked the 34th straight month of expansion in retail sales and the fastest growth since February 2024, with rising wages continuing to support consumption. Sales grew for fuel (8.7%), non-store retailers (8.0%), automobile (5.9%), other retailers (5.2%), pharmaceuticals & cosmetics (4.9%), machinery & equipment (2.8%), department stores (1.3%), clothing & personal goods (1.0%), and food & beverage (0.9%). On a monthly, basis retail sales rose by 0.5% in January, rebounding from an upwardly revised 0.8% drop in the previous month.