Japan’s key consumer prices rose 2.8 percent in August from a year earlier, driven by the sharpest rise in rice prices in nearly 49 years and higher electricity rates, data from Japan’s interior ministry showed on Friday.
The core consumer price index, which does not include the often fluctuating prices of fresh food, was 108.7, while it was still at 100 in 2020.
The index rose for the 36th consecutive month. The growth rate increased for the fourth consecutive month.
Rice prices rose 28.3 percent, the largest increase since the 49.5 percent growth in September 1975.
Consumers flocked to buy rice to prepare for a possible major earthquake after a government warning and an approaching typhoon, sending rice prices soaring as supplies dwindled after last year’s extreme summer heat, ministry officials said.
Food prices (excluding fresh food) rose 2.9%, reflecting increased rice prices and a 12.7% increase in chocolate prices due to higher commodity prices.
Electricity rates rose by 26.2% and municipal gas rates by 15.1% after government subsidies were abolished.
Electricity and city gas prices are expected to rise less rapidly in the coming months, as consumption subsidies have been reintroduced from August. This will have an impact on bills from September.
Gasoline and kerosene prices fell year-on-year.
The overall CPI, including fresh food prices, rose 3.0%. The narrower index excluding fresh food and energy prices rose 2.0%.
