TOKYO: Rice prices in Japan last month were almost twice what they were a year earlier, official data showed Friday (Apr 18), as core inflation accelerated in the world’s number four economy.
The price of the grain has soared in recent months, prompting Japan’s government to release some of its emergency stockpile into the market.
Excluding fresh food, consumer prices rose 3.2 per cent in March year-on-year compared to 3.0 per cent in February – in line with market expectations.
Excluding energy as well, prices rose 2.9 per cent last month, up from 2.6 per cent in February. But overall inflation eased to 3.6 per cent from 3.7 per cent.
The data is likely to strengthen expectations that the Bank of Japan will hike interest rates, with inflation above the BoJ’s target of 2 per cent for almost three years.
However, uncertainty caused by US President Donald Trump’s trade policies could prompt the central bank to stick to its current stance for now.
The internal affairs ministry said that the prices of both fresh and non-fresh food products rose, as did hotel fees.
But grain prices saw the biggest increase, rising 25.4 per cent. Rice prices logged an enormous 92.5 per cent jump, driven by a shortage of the staple.
