The deceleration comes despite aggressive measures spearheaded by Japan's Prime Minister Shinzo Abe to spur growth after years of stagnation.
Abe has increased government spending and installed a central banker in Haruhiko Kuroda who is not afraid to use aggressive monetary policy.
The yen has fallen almost 20 percent against the dollar in the past year and the Nikkei index of leading shares has added 60 percent over the same period.
It has been a big boost for Japanese exports and some of Japan's flagship brands have been reaping the rewards.
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