Japan’s core inflation rate climbed to 3.7% in May, marking its highest level since January 2023 and putting more pressure on the Bank of Japan to raise rates to combat inflation.
The figure — which strips out costs for fresh food — was higher than the 3.6% expected by economists polled by Reuters, and is above April’s reading of 3.5%.
Rice prices spiked 101.7% year on year, the largest increase in more than half a century.
Japan’s rice prices have been in the spotlight in recent times, with the government releasing emergency stockpiles to moderate the price of the country’s staple food.
Headline inflation came in at 3.5%, lower compared to the 3.6% in April. This marks the 38th straight month that inflation has run above the BOJ’s 2% target.
