Tokyo: Japan's core consumer inflation surged to a 28-month high of 3.7% year-on-year in May, driven by soaring rice prices, as revealed by official data. This marks an acceleration from April's 3.5% figure, with the inflation rate consistently surpassing the Bank of Japan's 2% target since April 2022.

According to Anadolu Agency, the core Consumer Price Index (CPI), which excludes energy and fresh food, rose by 3.3% in May, following a 3% increase in April. Ministry of Internal Affairs and Communications data highlighted that food prices, excluding fresh goods, increased by 7.7%, up from a 7% rise in the previous month. A significant factor was the 101.7% spike in rice prices, setting a record for the eighth consecutive month.

Energy prices in May rose by 8.1%, showing a deceleration from April's 9.3% increase. Meanwhile, prices for household durable goods grew by 3.8%, slowing from 6.4% in April, attributed partly to weakened demand for air conditioners.

The persistent rise in rice prices can be linked to unusually hot summer weather affecting yields and farmers transferring higher production costs to consumers. This situation has led to Japan importing rice from South Korea for the first time in years, as rice prices continue to elevate inflation expectations.

The May core CPI data underscores the challenges faced by the Bank of Japan in managing the ongoing pressure of food inflation, compounded by the economic risks associated with US tariffs.