Economy High rice prices: Inflation in Japan continues to rise
Inflation in Japan rose significantly again in May. Among other things, it was driven by the persistently high price of rice.
20.06.2025, 12:01
SDA
Core inflation, which indicates the year-on-year increase in consumer prices in Japan excluding fresh food, rose from 3.5 to 3.7 percent according to official figures on Friday. Rice prices rose by 101 percent compared to the same month last year, after 98.4 percent in April and 92.5 percent in March.
The main reasons for this are a poor harvest due to hot weather in 2023 and panic buying triggered by warnings of a "mega-quake" last year. The record number of tourists is also being blamed for an increase in consumption. In addition, traders are suspected of hoarding grain.
Inflation and rice prices in particular are also becoming an increasing problem for the government in view of the upcoming Senate elections in July. To counteract this, it has released stocks from its strategic reserves in recent months to push down prices - with moderate success.
Government aid extended
Moreover, it is not only the price of rice that is driving inflation. Other foodstuffs such as chocolate and coffee have also become much more expensive.
In May, the price of electricity also jumped by 11.3 percent and gas rose by 5.4 percent. To mitigate the effects, Prime Minister Shigeru Ishiba has extended housing subsidies, extended energy subsidies and announced a welfare voucher program of 20,000 yen or the equivalent of 113 francs per citizen.
