Exports rose 11.5 per cent year-on-year in December, the slowest growth since the beginning of last year, weighed by China-bound cars, auto parts and chip-making machinery, according to Ministry of Finance data MOF on Thursday.
The cost-push inflation that boosts costs of living and doing business could deprive purchasing power, according to the imports of oil, coal and liquefied natural gas.
The rises in shipments and imports compared with 10.1 per cent and 22.4 per cent year-on-year gains predicted by economists in a Reuters poll.
December's trade deficit, at 1.45 trillion yen, was $11.29 billion compared to the economists' median estimates of 1.65 trillion yen.
Thursday's trade data shows the challenges of a resource-deficient country that relies heavily on imports of commodity and energy. The data doesn't help policymakers' hopes for an export-led economic recovery from the pandemic.