Undercut by concerns regarding inflation and livelihoods, Japan's official consumer confidence index fell to 34.1 in March, down from 34.8 in February, and slipping further below the 50-level that separates optimism from pessimism, reported the Cabinet Office on Wednesday.

The consumer confidence sub-index for "overall livelihood" fell to 30.9 in March, slipping from 31.5 in February, reported officials.

Meanwhile, nearly 94% of Japanese consumers in March expected prices to rise in the coming 12 months.

Japanese consumer outlooks also declined for incomes and working.

The consumer sub-index for "income growth" logged at 38.8 in March, down from 39.5 in February, while the sub-index for "employment" declined to 39.2 from 40.9, reported the Cabinet Office.

In mild contrast, the "willingness to buy durable goods" sub-index struck 27.3 in March, still low but inching up from 27.1 in February.

The outlook for Japan's consumers may not improve much, if recent reports from the Bank of Japan are an indicator.

In its latest forecast made in late January, Japan's central bank estimated the nation's gross domestic product (GDP) would expand by a modest 1.1% in the fiscal year starting April 1, while the consumer price index (CPI) would rise 2.4% on year.

In recent months, increases in Japan's CPI have outstripped wage gains, leading to real wage contraction, reported the Ministry of Health, Labor and Welfare on Monday.