Rice is displayed for sale outside a store in Tokyo on April 24, 2026. Japan's core inflation accelerated to 1.8 percent in March, government data showed April 24, largely driven by rising food prices. (Photo by Kazuhiro NOGI / AFP)
Japan's core inflation accelerated to 1.8 percent in March, government data showed on Arpil 24, largely driven by rising food prices.
Prime Minister Sanae Takaichi has promised to fight inflation as a major priority, with public discontent over rising prices a contributor to the downfall of her two predecessors.
The year-on-year rise in consumer prices, which excludes volatile fresh food, jumped from 1.6 percent in February, and was higher than market expectations of 1.7 percent.
Japan's central bank warned last month that it expected inflation to increase because of the "recent rise in crude oil prices" caused by the Middle East war.
Inflation fell in February to its lowest level since 2022.
But energy prices fell year-on-year in March and the cost of gasoline tumbled by 5.4 percent after the government began an emergency subsidy program to drive down the cost.
Conversely, food prices, other than fresh products, jumped 5.2 percent year-on-year.
"A weak yen also lifted goods prices, including household durables, reflecting higher import costs," said Taro Kimura of Bloomberg Economics.
Japan depends on the Middle East for around 95 percent of its oil imports.
The country began tapping its stockpiles, among the world's largest, in March.
Japan, long haunted by the threat of deflation, has been facing a sustained rise in consumer prices since spring 2022.
To contain it, the country's central bank began tightening interest rates in March 2024, after 10 years of ultra-accommodative monetary policy.
