Japan Sees 2.7% Spike in Consumer Prices as Energy and Food Costs Surge

TOKYO, Aug 23 (News On Japan) - The Ministry of Internal Affairs and Communications announced that Japan’s nationwide Consumer Price Index (CPI) for July, excluding fresh food due to its price volatility, increased by 2.7% compared to the same month last year.

This marks the 35th consecutive month of increase, with the growth rate expanding for the third straight month since May.

One of the contributing factors is the significant rise in energy prices, which saw a sharp increase after government subsidies for electricity and gas temporarily ended.

In addition, food prices have continued to rise. Notably, the price of rice, excluding Koshihikari, increased by 18% year-on-year, driven by a reduction in supply caused by last summer's extreme heat and a surge in demand from the dining industry.

Furthermore, the price of senbei (rice crackers) also jumped by 16.1% due to the rising cost of rice and other raw materials.

Source: ANN

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