Inflation & Prices
Japan’s Struggle With Rice Inflation to Continue After Harvest
- Tourists and disaster panic buying drove robust grain demand
- Commercial inventories tumbled to a record low in June
Bags of rice are expected to start filling the shelves of Japan’s supermarkets again soon as farmers harvest their new crop, though the increase in supply will do little to tame higher prices.
Japan’s commercial rice stockpiles — already depleted after hot weather baked the 2023 crop — shrunk to the lowest on record in June as an influx of tourists lifted consumption. Panic buying following typhoon and earthquake warnings exacerbated the shortage and some retailers had to limit sales.