Japan's retail¹ sales rose more-than-expected in January driven up by a surge in car sales as government subsidies² on energy efficient cars boosted demand.

日本政府对节能车型的补贴促进汽车销量的上涨，由此带动一月份零售业的增长。

Retail sales rose 1.9% from a year earlier, with car sales up by 24%.

The jump comes after Japan reintroduced subsidies of up to 100,000 yen³ ($1245; £786) per car to encourage sales.

The country's carmakers were among the worst hit businesses by last year's earthquake and tsunami⁴.

In December, the Japanese government announced that it would set aside（留出） 300bn yen as part of its subsidy⁵ programme for energy efficient cars.

Analysts⁶ said the subsidies were likely to boost sales further in the coming months.

" The Japanese automotive association predicts that domestic car sales in 2012 will reach 5 million, up 19% year-on-year due to subsidy and normalization⁷ of the supply chain disruption," said Takuji Okubo of Societe Generale in Tokyo.

"Car sales account for 10% of Japanese retail sales, and if the association's prediction is true, it would boost overall retail sales by 1.9% in 2012."