4 days ago
Ishiba's premiership put to the test as rice prices double last month
Rice prices in the country soared 99.2% in June year-on-year, official data showed, piling further pressure on Prime Minister Shigeru Ishiba ahead of elections this weekend.
Public support for Ishiba's administration has tumbled to its lowest level since he took office last year, partly because of frustration over the cost of living.
One of the main sources of anger has been inflation and in particular the surging cost of rice, as well as scandals within the ruling party.
The price of the grain already rocketed 101% year-on-year in May, having jumped 98.4% in April and more than 92.5% in March.
Overall, Japan's core inflation rate slowed to 3.3% last month from 3.7% in May, data from the internal affairs ministry showed yesterday.
The reading, which excludes volatile fresh food prices, was slightly below market expectations of 3.4%.
Excluding energy and also fresh food, consumer prices rose 3.4%, compared with 3.3% in May.
Opinion polls ahead of tomorrow's election suggest the ruling coalition may lose its majority in the upper house. This could force Ishiba to resign after less than a year in office.
In October, his coalition was deprived of a majority in the powerful lower house. It was the worst election result in 15 years for the Liberal Democratic Party, which has governed Japan almost continuously since 1955.
Ishiba is under additional pressure to reach a trade deal with the United States before new tariffs of 25% take effect on August 1.
Japan's important auto imports into the world's biggest economy are already subject to painful levies, as are steel and aluminium.
US President Donald Trump wants to get Japanese firms to manufacture more in the United States, and Tokyo to buy more US goods – notably gas and oil, cars and rice – to reduce the US$70bil (RM297bil) trade deficit with the Asian powerhouse.
Ishiba, who has sent his trade envoy Ryosei Akazawa to Washington seven times to try and broker a deal, hosted US Treasury Secretary Scott Bessent on Friday.
Akazawa also joined the talks and travelled with Bessent to visit the World Expo in Osaka, the Japanese government said.
The Bank of Japan has been tightening monetary policy since last year as inflation crept up but worries about the impact of US tariffs on the world's number four economy has forced it to take a slower approach. — AFP
