Japan's Rice Prices Surge 92%, Driven by Inflation

Japan's core consumer prices rose 3.2% in March compared to a year earlier, driven largely by an unprecedented 92% surge in rice prices, the fastest increase since records began in 1971. The spike in rice prices, attributed to poor harvests from extreme weather, panic-buying after a major earthquake warning, increased tourism, and suspected hoarding, has forced the government to release more than 200,000 tons from emergency stockpiles and plan further auctions. Despite these measures, rice prices at supermarkets have more than doubled, leading some consumers to seek alternatives like noodles. Imported rice, particularly from the United States, is helping to meet demand, with February imports reaching nearly 40% of the previous year’s total. The ongoing rice shortage and price hikes have fueled Japan’s overall inflation, which has remained above the Bank of Japan’s 2% target for nearly three years, intensifying speculation about a future rate hike. Trade tensions with the U.S. have also been highlighted, as the White House criticizes Japan's high tariffs on American rice, though these tariffs are currently paused.