Retail sales in Japan increased 5.3% year-on-year in May 2026, accelerating from an upwardly revised 2.8% rise in the previous month and surpassing market expectations for a 3.2% gain. It was the strongest growth since November 2023, supported by government measures, including a stimulus package aimed at boosting consumption and easing price pressures. On a monthly basis, retail sales rose 1.9%, easing from an upwardly revised 2.1% gain in April, which was the fastest increase in four months.