Japan’s core inflation accelerated last month, with rice prices almost doubling from a year earlier, according to official data released Friday. The price increase has prompted the government to release emergency stockpiles into the market.
Excluding fresh food, consumer prices rose 3.2% in March compared to February, while excluding energy, prices increased by 2.9%. However, overall inflation eased to 3.6% from 3.7%.
The data strengthens expectations that the Bank of Japan will hike interest rates due to rising inflation above its target of 2%. The US President Donald Trump’s trade policies have created uncertainty, which may prompt the BoJ to maintain its current stance.
Rice prices saw a massive 92.5% jump, driven by a shortage caused by poor harvests and panic-buying after last year’s “megaquake” warning. The government has released around 210,000 tonnes of rice from its stockpile so far, with plans to auction another 100,000 tons this month.
The rising prices have also affected cabbage, which increased by 111.6% in March compared to the same period last year. Last year’s record summer heat and heavy rain ruined crops, leading to the current price surge.
The data has put pressure on the government of Prime Minister Shigeru Ishiba to take action to help consumers.
Source: https://www.channelnewsasia.com/east-asia/japan-rice-prices-soar-core-inflation-accelerates-5074041