“What’s particularly striking is the sluggishness in consumption and capital expenditure that are key pillars of domestic demand,” said Yoshiki Shinke, senior executive economist at Dai-ichi Life Research Institute.

I can't imagine how anyone is surprised by this. Japanese goods have increased in price (inflation) for the first time in an extremely long time. As in, for the first time within many people's memories. Of course they're suddenly going to be more concerned about spending.