Tokyo, May 23, 2025–Data from the central bank’s investigation of the trade war’s Donald Trump’s impact on inflation showed on Friday that grain prices nearly doubled. In addition, the media puts pressure on Shigeru Ishiba, the prime minister, as well as the government’s ability to rely on emergency stockpiles while a chancellor was forced to resign over a blunder regarding the nation’s food staple. The internal affairs ministry reported that last month, core inflation, excluding fresh food, hit 3.5 %, which is its highest level since January 2023 and a significant increase from the 3.2 % rate in March. Wheat prices increased by a staggering 98.4 % year over year, substantially more than the increase from the previous month. The authorities, which was already struggling to gain popularity after losing its parliamentary majority in an election next month, is facing a crisis due to the growing cost of a significant portion of the Chinese population’s dieting. Factors contributing to the gap include sluggish crop production in 2023 and panic-buying caused by a “megaquake” warning next year. While some investors are alleged to be stealing the corn, record numbers of travelers have also been linked to a rise in consumption. For the first time since it was established in 1995, the government started holding auctions of its stash next month. The consumer price index increased 3.0 percentage, from 2.9 percent in March, to 3.6 percent after energy and clean food, according to Friday’s data, while the total adjusted rate was unchanged. Since about three years ago, underlying inflation has been above the BoJ’s specific rate of two percentage, and while the central bank initially started raising interest rates last year, it has since stopped as it examines the effects of Trump’s taxes. The Bank of Japan is retending any further increases for now as Asian officials travel to Washington to resume negotiations to lower the US government’s tariffs. At its most recent meeting this month, the BoJ revised its country’s economic growth forecasts to reflect the country’s concern that taxes were causing worldwide economic uncertainty. Customer cost inflation will gradually slow down, according to Stefan Angrick of Moody’s Analytics. ” US taxes and price threats will further stifle growth in Japan and around the world, more weighing down demand-driven cost pressures. The Bank of Japan is still active, but it is not moving any more. The central banks will remain on hold for the time being due to tax fog. We anticipate a new level increase in the first half of 2026. His land minister resigned this week after making provocative remarks that caused public outcry, adding to the issues Ishiba is having. Over the weekend, Taku Eto claimed at a meeting that he had “never bought wheat myself because my followers donate so much to me that I may almost sell it.” The prime minister apologized to the Japanese people after Eto’s resignation, saying,” It’s my responsibility to appointed him.”” It’s a structural phenomenon, I believe, that rice prices are still high,” the statement. He said that we must have thorough discussions about this, and that the prices ( of course ) must go down. According to Marcel Thieliant of Capital Economics, “rice prices should start to ease once more soon as regular grain prices are showing signs of stabilization.”
