Rice prices in Japan continued to skyrocket, with a 99.2% increase in June compared to the same period last year, according to official data released.
Previously, rice prices increased by 101% in May; 98.4% in April and more than 92.5% in March. This situation has contributed to a sharp decline in support for Prime Minister Shigeru Ishiba.
The escalation of rice prices is believed to be due to many reasons. A dry summer and extreme heat two years ago caused great damage to the crop, leading to a shortage of rice supply. Some traders have also been accused of hoarding rice to wait for prices to increase in order to make a profit.
In addition, the government's warning about the risk of a "super earthquake" has led to people concentrating on rice, pushing prices even higher.
The government is forced to take unusual measures and clear emergency reserves from February. This is a reserve that is often only used in case of natural disasters.
Meanwhile, core inflation in Japan slowed to 3.3% in June from 3.7% in May. However, consumer prices - not including energy and fresh food - still increased by 3.4%, reflecting continued climbing living costs.
The problem of rising rice prices along with scandals within the ruling party has weakened support for Mr. Ishiba. The October election results caused his coalition to lose its majority in the lower house, marking the worst defeat in 15 years for the Liberal Democratic Party (LDP).
The latest survey shows that the ruling coalition could continue to lose its majority in the Senate after the upcoming election, which could force Ishiba to resign after less than a year in office.
At the same time, he is under great pressure in trade negotiations with the US to avoid the 25% tax rate expected to take effect from August 1. US President Donald Trump is asking Japan to increase imports of US products, especially gas, cars and rice, to reduce the bilateral trade deficit of 70 billion USD.
Mr. Ishiba has sent special forces behind Ryosei Akazawa to Washington 7 times to seek a solution and is expected to meet US Treasury Secretary Scott Bessent this weekend.
In that context, the Bank of Japan, although it has started tightening monetary policy since last year, is being forced to be more cautious due to concerns about the impact of trade barriers.
