Consumer confidence fell in March to the lowest level since August 2011, and the government cut its economic assessment for the first time in 17 months, as the April 1 consumption tax hike sapped the public's spending power.
The reading of 37.5, down from 38.5 in February, was released by the Cabinet Office on Thursday. About 90 percent of respondents to the survey expect prices to rise over the next 12 months, the highest since 2004.
Prime Minister Shinzo Abe risks the public souring on his campaign to sustain growth in the world's third-biggest economy as prices rise while wages stay stagnant. Weak consumer sentiment could make it harder to drive a rebound from a contraction forecast this quarter, while simultaneously increasing the chances the Bank of Japan will add to its unprecedented monetary easing.
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