Japan's inflation has accelerated, and rice prices have risen to a 50-year high

On April 18, the Japanese CPI index rose sharply last month, supporting the Bank of Japan’s stance of gradually raising interest rates before U.S. tariff measures cast a shadow on the economic outlook. The data showed that Japan’s core CPI rose 3.2% year-on-year in March, up from a 3% increase in the previous month and in line with market expectations. Friday’s data is likely to give BoJ officials confidence in their rate hike stance as headline inflation has been above its 2% target for almost three years. Despite the impact of government utility subsidies, prices have increased at a faster pace. Service prices increased by 1.4% over the same period last year; Food prices rose 7.4 percent year-on-year, slightly lower than the previous month’s 7.6 percent. The price of rice, a staple food, rose 92.1 percent from a year earlier, the fastest increase since 1971.