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Japan’s imports fell 2.5% year-on-year to JPY 10,340.2 billion in January 2026, defying market expectations for a 3% increase and reversing the 5.2% rise recorded in December. This was the first decline since August, pointing to softer domestic demand and lower energy costs, following a period in which winter stockpiling had propped up import volumes late last year. The pullback occurred despite Tokyo’s substantial stimulus package—the first under the Takaichi administration—suggesting that fiscal support has not yet fully translated into stronger import demand.