Rice prices double in Japan as inflation accelerates

The vote for parliament's upper house, due next month, is crucial for Ishiba after public support for his government tumbled to its lowest level since he took office in October, partly due to frustration over the cost of living.
In May, Japan's core inflation rate, which excludes volatile fresh food prices, hit 3.7 percent -- its highest level since January 2023 -- interior ministry data showed.
The figure narrowly beat market expectations and was up from a 3.5 percent year-on-year rise logged in April.
Rice was more than twice as expensive as a year previously -- despite the government releasing its emergency stockpile of the staple grain to try to bring its price down.
A supply chain snarl-up has caused a shortage of rice in shops, with the grain's price up 101 percent on-year in May, compared to the eye-watering 98 percent rise in April.
The government began releasing stockpiles in February in an attempt to drive down prices, something it has only previously done during disasters.
Electricity bills were 11.3 percent higher in May, and gas fees rose 5.4 percent, according to Friday's data.
Excluding energy and fresh food, Japan's consumer price index (CPI) rose 3.3 percent, compared to April's 3.0 percent.
Cash handouts
To help households combat inflation, Ishiba has pledged cash handouts of 20,000 yen ($139) for every citizen, and twice as much for children, ahead of the election.
The 68-year-old leader's coalition was deprived of a majority in the powerful lower house in October as voters vented their anger at rising prices and political scandals.
It was the worst election result in 15 years for the Liberal Democratic Party (LDP), which has governed Japan almost continuously since 1955.
Earlier this week the Bank of Japan kept its interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy.
"Policy flip-flops and delayed pass-through from producers to consumers mean inflation will slow only gradually in the coming months," said Stefan Angrick of Moody's Analytics.
"This will keep a sustained pickup in real wages out of reach, and with it a meaningful uptick in consumption."
Factors behind the rice shortages include an intensely hot and dry summer two years ago that damaged harvests nationwide.
Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say.
The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike.
Going forward, US tariffs are expected to weigh on Japan's growth, with economists predicting a slowdown ahead.
Intensifying fighting between Iran and Israel was also adding pressure for energy prices to head north, posing a further risk to the Japanese economy.

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Euronews

9 hours ago

• Euronews

Air Astana CEO reveals plans to boost market value

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Additionally, even once the licence is given, delays can still be seen in customs clearances,' said Adam Dunnett, the Chamber's secretary general. Beijing's latest move to ease export restrictions on key components for the automotive industry offers only limited relief to a sector under strain. The European automotive industry, already grappling with competition from lower-cost Chinese electric vehicles, remains vulnerable to material shortages, delays and discretionary actions from Beijing — thereby reinforcing China's leverage in global trade negotiations.

Fashion Network

10 hours ago

• Fashion Network

Princesse tam tam and Comptoir des Cotonniers heading for receivership

Another major French fashion player is under threat. has learnt that fashion retailer Comptoir des Cotonniers and lingerie chain Princesse tam tam are heading towards receivership proceedings. The owner of the two chains, Japanese group Fast Retailing, is about to file for receivership for both. The application is set to be filed with the Paris trade court on Friday June 20, sources close to the matter have told The two chains, bought by Fast Retailing in 2005, have been battling the fashion market's headwinds for several years, having been reorganised three times in succession, in 2018, 2021 and 2023. The move that will make it easier for the two chains to go into receivership was made by Fast Retailing in September 2024, when it decided to merge the two businesses into a single corporate entity, under the Fast Retailing France company. The latter doesn't include the lucrative business of Uniqlo in France, whose 30 stores are run by a European holding company based in London. With the reorganisation carried out two years ago, Princesse tam tam deployed a redundancy plan that led to the closure of 27 out of 69 stores, for a loss of 84 out of 235 jobs, while Comptoir des Cotonniers closed 28 out of 67 stores and slashed 101 out of 272 jobs. The chains are currently operating a total of nearly 90 stores, approximately 50 for Princesse tam tam and about 40 for Comptoir des Cotonniers. In spring 2024, in an effort to revive their fortunes, the chains, led by Kunii San, announced they were cutting retail prices by approximately 30%, in order to attract a broader clientèle, notably 25 to 35-year-olds. They also forged closer links with Uniqlo, dropping joint capsule collections and opening shop-in-shops within Uniqlo stores. Comptoir des Cotonniers, which became part of Fast Retailing exactly 20 years ago, was an extremely popular brand in the 2000s and 2010s in France, characterised by a casual-chic style and adverts chiefly featuring mothers and daughters. The brand was founded in 1995 by the Elicha family, opening its first stores in the Toulouse area. Princesse tam tam was created 10 years earlier, in 1985, designed by the sisters Loumia and Shama Hiridjee. It carved out a niche for itself in the French fashion landscape with its brightly coloured underwear and swimwear featuring successful prints, taking a sideways step from classic French lace items. Another two fashion chains active in the French retail sector are therefore adding their names to the list of defaults, following the first tremor caused by Camaïeu going into liquidation in 2022. Recently, Jennyfer has liquidated most of its assets, as did Café Coton, while Naf Naf and André have both been placed in receivership. By initiating these proceedings, Fast Retailing has made the decision to no longer give financial support to Princesse tam tam and Comptoir des Cotonniers, and to stop feeding them cash. However, the group is doing extremely well on a global scale. In H1 of fiscal 2024/25, its net income jumped 19.2% to reach ¥233.5 billion (€1.4 billion). Revenue in the period grew by 12% to ¥1.790 trillion (€10.7 billion).

LeMonde

11 hours ago

• LeMonde

French police launch nationwide crackdown on undocumented migrants

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