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Tokyo Inflation Hits 3.6% Amid Soaring Rice Prices

5/30/2025

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Summary

Story summary

Core inflation in Tokyo surged to 3.6% in May, marking a two-year high, largely fueled by soaring food costs, particularly a staggering 93.2% jump in rice prices. As economic uncertainty looms from U.S. tariffs, the Bank of Japan is under pressure to consider interest rate hikes, though most economists predict rates will hold steady until September, with possible increases by year-end.

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Story summary

Core inflation in Tokyo surged to 3.6% in May, marking a two-year high, largely fueled by soaring food costs, particularly a staggering 93.2% jump in rice prices. As economic uncertainty looms from U.S. tariffs, the Bank of Japan is under pressure to consider interest rate hikes, though most economists predict rates will hold steady until September, with possible increases by year-end.