Rice Prices Soar 101% in Japan as Inflation Squeezes Households Ahead of Key Vote
TOKYO: Rice prices in Japan surged by more than 100 percent in the 12 months to May, official data showed Friday, exacerbating inflation and political pressure on Prime Minister Shigeru Ishiba ahead of pivotal elections next month.
The steep rise — driven by supply chain disruptions, hoarding, and weather-damaged harvests — has turned rice into a symbol of economic hardship in households nationwide. In May alone, rice prices climbed 101 percent year-on-year, following similar surges of 98.4 percent in April and 92.5 percent in March.
The increase in rice costs pushed core inflation to 3.7 percent in May, up from 3.5 percent in April and the highest level since January 2023. Prices for electricity and gas also contributed, rising 11.3 percent and 5.4 percent respectively.
In response, the government has taken the rare measure of releasing its emergency rice reserves, typically used only during natural disasters. Still, discontent is growing, especially among lower-income earners whose wages remain stagnant.
“Prices are going up nonetheless, and I feel the impact,” said Chika Ohara, a 52-year-old temporary worker in Tokyo.
To ease the burden ahead of the upper house elections, Ishiba’s administration has pledged cash handouts — ¥20,000 ($139) per person and double that amount for each child.
Public dissatisfaction has deepened since Ishiba took office in October. His Liberal Democratic Party, which has ruled almost continuously since 1955, suffered its worst lower house election result in 15 years.
While the Bank of Japan has cautiously begun to tighten policy, it kept interest rates unchanged this week and slowed its bond purchase tapering amid concerns over global instability and US tariffs.
Economists warn that inflation will remain stubborn, limiting real wage growth and curbing household spending. Moody’s Analytics’ Stefan Angrick said delayed price adjustments and policy indecision will prevent any meaningful rise in consumption.
Compounding the crisis is a legacy of poor harvests from an exceptionally dry summer two years ago. Traders have since been accused of hoarding rice, while panic buying spurred by earthquake warnings further strained supplies.
Adding to the inflationary pressures, global energy prices continue to climb due to intensifying hostilities between Iran and Israel — posing yet another threat to Japan’s fragile recovery.
