Japan battles food inflation as rice prices nearly double compared to the same period last year. According to recent government data, core inflation rose in March, making daily necessities harder to afford for many Japanese households.
Rice prices jumped 92.5 percent year-on-year, marking one of the largest increases in recent decades. This surge follows a short supply triggered by poor harvests and panic buying. In addition, a hot summer in 2023 and earthquake warnings caused sharp shifts in consumer behavior.
To calm the market, the Japanese government released rice from its emergency reserves for the first time since 1995. Officials have already sold 210,000 tons and plan to release another 100,000 tons this month. Clearly, Japan battles food inflation by turning to its reserves to stabilize prices.
Meanwhile, cabbage prices also spiked by 111.6 percent in March, compared to the same time last year. Last year’s record heat and heavy rain destroyed crops, driving this dramatic increase. Local media called this crisis a “cabbage shock,” reflecting public frustration over surging food prices.
Core inflation, excluding fresh food, rose 3.2 percent in March, up from 3.0 percent in February. When excluding both food and energy, inflation still climbed to 2.9 percent. These figures exceeded Japan’s central bank’s long-standing 2 percent inflation target.
As a result, pressure continues to mount on the Bank of Japan to raise interest rates. However, concerns over U.S. trade policies, especially under President Trump, may delay such actions.
The U.S. recently paused a 24 percent tariff on Japanese imports, partly citing a 700 percent Japanese tariff on U.S. rice. Japan’s agriculture minister called this claim “incomprehensible,” fueling more tension between the two economies.
Nevertheless, Japan battles food inflation through both policy adjustments and emergency actions. As food costs soar, public demand for more government intervention grows stronger by the day.
In the coming weeks, all eyes will remain on Japan’s economic response. Whether interest rates rise or not, one thing is clear: Japan battles food inflation with urgency and focus.
