“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.

Might this have been part of their attempts to trigger inflation?

Japan had been in deflation for 25 years. They were trying to get out of it.

If one of the criticisms of the 'ultra-easy' low interest policy is that it causes inflation, that doesn't appear to be the case since inflation has been going down there just like every other country..