FX.co ★ Japan Moves to Curb Surging Rice Prices Ahead of Election

Japan is set to hold a ministerial meeting as soon as this week to tackle the rising rice prices, Prime Minister Shigeru Ishiba announced on Monday. The move comes amid increasing public dissatisfaction ahead of the upcoming summer election. Last week, the government released 300,000 metric tons of rice from its reserves to help curb the prices, which have doubled — and in certain areas, increased by 2.5 times — over the past year. Retailers such as Aeon and Don Quijote have reportedly started offering this government-released rice, with Aeon pricing 5-kilogram bags at under JPY 2,000, significantly less than the average JPY 4,200 typically found in stores. This strategy follows several months of unprecedentedly high prices despite previous auctions of stored rice. According to Koizumi, the latest release will avoid traditional supply routes and be sold at a fixed price to ensure it directly reaches consumers, as pressures from inflation and the looming election intensify.