US EditionJapan core inflation dips to lowest since March as rice price shock shows signs of fading
Japan's core inflation rate eased to 3.1%, down from 3.3%, as rice prices surged 90.7% year-on-year in July, prompting government intervention to curb costs.
- On Aug 22, Japan's internal affairs ministry reported nationwide core CPI rose 3.1 percent in July, slowing from 3.3 percent in June but remaining above the Bank of Japan's two-percent target.
- Rice prices in Japan surged 90.7 percent year-on-year in July after even larger jumps in May and June, reflecting a sharp staple-food shock caused by a very hot summer, panic-buying, alleged hoarding and more tourists.
- Prime Minister Shigeru Ishiba appointed a new farm minister and released rice from emergency stocks, while the Japanese government changed its decades-old crop policy earlier this month to cool prices.
- Markets say slowing inflation above 2 percent keeps BOJ rate-hike hopes alive, with Taro Kimura seeing a 25-basis-point October rise and a Reuters poll showing 63 percent expect rates at least 0.75 from 0.5 by end-2025.
- Politically, Prime Minister Shigeru Ishiba's ruling coalition lost its majority amid inflation anger, while external pressure from US Treasury Secretary Scott Bessent and the US-Japan trade deal reinforced expectations for tighter policy as energy prices fell 0.3 percent.
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Rice price inflation in Japan eases to 90.7% in July
TOKYO, Japan — Rice prices in Japan soared 90.7 percent in July year-on-year, official data showed Friday. But the rate of increase slowed from previous months, offering some relief for Prime Minister Shigeru Ishiba. Japan’s core inflation rate eased to 3.1 percent from 3.3 percent in June, data from the internal affairs ministry showed. But the rate remains above the Bank of Japan’s two-percent target. This cements expectations that it will hik…
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Total News Sources33
Leaning Left3Leaning Right6Center12Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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