Japan’s core consumer prices surged in August, with a 2.8% increase from the previous year. This rise was driven by a steep increase in rice prices, the highest in nearly 49 years, as well as higher electricity rates. The core consumer price index reached 108.7, marking the 36th consecutive month of growth and the fastest pace in four months.
Rice prices soared by 28.3%, the largest jump since 1975, due to increased demand from consumers preparing for potential disasters and a typhoon, along with decreased supply from last year’s harsh weather conditions. Similarly, food prices excluding fresh items rose by 2.9%, influenced by the surge in rice prices and a 12.7% increase in chocolate prices driven by higher material costs.
Electricity rates climbed by 26.2%, while city gas rates rose by 15.1% after government subsidies were phased out. However, prices are expected to stabilize as subsidies were reinstated in August. Gasoline and kerosene prices experienced year-on-year declines, balancing out the overall consumer price increase of 3.0%.
In summary, Japan’s consumer prices experienced significant growth in August, driven by soaring rice prices and higher energy costs, with subsidies playing a key role in moderating future price increases.
[ad_2]
Source link
