Japan's Core Consumer Prices Rise 3.7% On Surging Rice Costs

Japan's core consumer prices in May rose 3.7% from a year earlier, marking the biggest increase in more than two years, as rice and other food costs surged, government data showed, Kyodo News reported.

The inflation rate has remained at or above the Bank of Japan's 2% target since April 2022.

The increase in the nationwide consumer price index, excluding volatile fresh food, was the sharpest since January 2023 and followed a 3.5% rise in April. The inflation rate has remained at or above the Bank of Japan's 2% target since April 2022.

The core-core CPI, which strips away both fresh food and energy to show underlying price trends, was up 3.3% in May, accelerating from 3% in April, the Ministry of Internal Affairs and Communications said.

Food prices, excluding fresh items, increased 7.7%, accelerating from a 7% gain in April, with rice setting a fresh record for the eighth consecutive month—surging 101.7% due to a supply shortage.