Latest news with #LDP
Eyewitness News
12 hours ago
- Business
- Eyewitness News
Rice prices double in Japan as inflation accelerates
TOKYO - Rice prices doubled last month in Japan as core inflation accelerated, official data showed Friday, posing a threat to Prime Minister Shigeru Ishiba ahead of July elections. 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.
Japan Today
13 hours ago
- Business
- Japan Today
Rice prices double in Japan as inflation accelerates
By Hiroshi HIYAMA Rice prices doubled last month in Japan as core inflation accelerated, official data showed Friday, posing a threat to Prime Minister Shigeru Ishiba ahead of July elections. 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. To help households combat inflation, Ishiba has pledged cash handouts of 20,000 yen 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, U.S. 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. © 2025 AFP
Japan Times
15 hours ago
- Business
- Japan Times
Ishiba handles minority government well over the six-month session
After beginning in January amid concerns of political paralysis under a minority Liberal Democratic Party-led coalition, parliament wraps up Sunday with the LDP and Prime Minister Shigeru Ishiba showing they can work with opposition parties individually and collectively to pass the budget and select pieces of legislation. With parliamentary business concluding, all eyes are on next month's Upper House election, as the LDP and ruling coalition partner Komeito look to retain their majority, while pocketbook economic issues are at the top of voter concerns. The LDP-Komeito coalition was forced to seek opposition party cooperation following their loss of majority in October's Lower House election, which Ishiba had called. The current session of parliament began with questions about whether the 2025 budget would be passed by April 1, the beginning of the new fiscal year. This deadline put Ishiba in the hot seat, facing questions about whether he had the political skills to convince at least one opposition party to support the ¥115.5 trillion ($738 billion) budget bill in order to get it passed in the Lower House, yet not compromise so much that it angered members of his own party. Ishiba's strategy was to have discussions centered on winning the cooperation of at least one of three major opposition parties: the Constitutional Democratic Party of Japan, Nippon Ishin no Kai and the Democratic Party for the People. In the end, Nippon Ishin, whose leader Seiji Maehara has a good relationship with Ishiba due to their shared love of trains, agreed to support the budget bill after securing a deal with the LDP to abolish the household income cap on eligibility for ¥118,800 in aid for public and private high school students, and to raise the amount of annual aid for private high school students to ¥457,000 per person beginning in fiscal 2026. Both were key Nippon Ishin budget priorities. Though slightly modified in the Upper House — where the LDP and Komeito hold a majority — and sent back to the Lower House, the budget was ultimately approved and went into effect on April 1. Ishiba's friendly relations with Maehara were a big factor in getting Nippon Ishin to agree to the budget. But political journalist Takuya Nishimura says Ishiba also benefited from the inability of the opposition parties to cooperate against the LDP. 'If the opposition parties, with their Lower House majority, had been united in opposing the LDP budget bill, Ishiba would have had to include one of the opposition parties in the ruling coalition, or offer them a Cabinet post to help get it passed,' Nishimura says. Either choice risked creating problems and rivalries for power within the LDP as well as Komeito. Instead, taking advantage of the inability of the opposition parties to band together, Ishiba chose to continue seeking parliamentary cooperation where possible, while keeping opposition parties and members outside the coalition and Cabinet. Ishiba's success with getting the budget passed did not give him much of a political boost, though. By mid-April — after U.S. President Donald Trump's sudden announcement that he would suspend, for 90 days, a 25% levy on Japanese auto imports and a reciprocal 24% tariff on other goods while the U.S. and Japan negotiated the issue — he was looking at an approval rating of just 23.1%. A lack of trust in the Ishiba Cabinet and perceptions of weak leadership in general were cited as reasons for his unpopularity. But there were also calls to lower the consumption tax in the face of Trump's tariff threats and rising prices, something which the LDP resisted. Ishiba did manage to negotiate agreements with different opposition parties on some key pieces of legislation. In April, the CDP, the DPP and Nippon Ishin joined the LDP and Komeito in supporting a cyber defense bill designed to allow the government to respond more quickly to possible cyberattacks from abroad. The CDP also supported an LDP and Komeito-backed pension reform bill that included expanded coverage of the kosei nenkin public pension program to a wider range of part-time and nonregular workers. Other legislative issues, however, proved more contentious. There remains broad disagreement within the ruling and opposition parties over which restrictions to place on corporate political donations and whether they should be banned outright. The discussion has been put off until at least the autumn session of parliament. Likewise, differences between the ruling and opposition parties means that two bills allowing married couples to have different surnames were not voted on in this parliamentary session. Prime Minister Shigeru Ishiba speaks to Constitutional Democratic Party leader Yoshihiko Noda in parliament on June 11. | JIJI Ishiba's political popularity took a hit after his agriculture minister sparked public outrage with a comment saying he had never paid for rice — amid rising prices — and was forced to resign last month. But the prime minister's fortunes improved in late May after selecting agriculture reform-minded Shinjiro Koizumi as the new minister. Koizumi ordered the release of older, cheaper government-stockpiled rice in a move welcomed by consumers. By mid-June, Ishiba's poll numbers were improving. A June 13-16 Jiji Press poll showed a Cabinet approval rate of 27%, a six point increase over the previous month. Despite talk of an opposition-backed no-confidence motion, which Ishiba said would result in a snap Lower House election, the CDP said Thursday it would not submit one. With the Upper House election looming, Ishiba finishes parliament with weak poll numbers for his Cabinet and party. But he also now has a parliamentary record of getting important legislation passed in the more powerful Lower House, and he is further aided by the fact he has no serious challengers within the LDP and the opposition remains divided. That, in turn, gives Ishiba more political breathing room to address controversial pocketbook issues in the coming election, including debates over cutting the consumption tax, the effectiveness of cash handouts and whether to abolish the gasoline tax, all of which are expected to feature across party platforms. 'As long as the LDP does not have a majority in the Lower House, Ishiba seems to be the best leader to deal with the minority government. There is no LDP rival who can deal with the current Lower House situation better than Ishiba,' says Nishimura.
Nikkei Asia
16 hours ago
- Business
- Nikkei Asia
Japan weighs 'national shipyard' to revive shipbuilding sector
TOKYO -- The Japanese government and ruling Liberal Democratic Party are drafting policies to revitalize the country's shipbuilding industry, including a plan for the government to construct or rehabilitate shipyards. The proposal will be submitted to Prime Minister Shigeru Ishiba on Friday by the LDP's Headquarters for Promoting Economic Security, chaired by Takayuki Kobayashi. It will urge that a detailed plan be produced by the fall that outlines specific support measures, a timeline for implementation, and the predicted levels of private and public sector investment.
Int'l Business Times
18 hours ago
- Business
- Int'l Business Times
Rice Prices Double In Japan As Inflation Accelerates
Rice prices doubled last month in Japan as core inflation accelerated, official data showed Friday, posing a threat to Prime Minister Shigeru Ishiba ahead of July elections. 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. 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.
