Japan Core Consumer Prices. Updated June 28, 2026.

Japan core consumer prices in May rise 1.4%, fuel subsidies slow increase

Ideas

Japan households continue to see their disposable incomes decreasing as inflation, ever since the pandemic, has been a constant stress over the last few years.

Yes, the 1.4 percent rise in food prices in April might be below 2 percent but that doesn't mean consumers don't feel the increase as those without jobs, part-time jobs, and those on limited contracts with children can actually feel the increase in food prices.

While the Japanese government has instituted some subsidies to help Japanese families, their food costs and energy costs might still be a burden for many of them, and especially those who have limited incomes or even fixed incomes while even a small increase in costs might feel like a huge increase.

At the same time, in a market economy it might not be the responsibility of a government to help or take care of every citizen but if you look at the Northern European countries, they do a pretty good job of trying to take care of most of their citizens with social programs, and despite what some critics might say they have strong market economies but have social programs to make their societies too.

While inflation overall might be slowing its still too high for many Japanese consumers and especially the lower-income and fixed-income groups who can feel even the slightest increase in prices.

Its good that the Japanese government has been giving subsidies to oil wholesaler in Japan, but to be fair, are the wholesalers passing-on the subsidies to Japanese consumers with lower prices or are they just taking advantage of consumers like some companies actually do.

Yes rice prices everywhere including prices on Rakuten and Amazon have even been higher than normal and its been that way since the summer of 2024 when the situation first came to light.

But as markets go, at least in theory, prices are beginning to finally come down with supplies forcing prices to get back to some kind of normalcy in Japan.

Yes, it might be difficult to pin-point if the situation in the Middle East has affected increased prices but there is usually a link some where in the supply chain which can determine if the situation has affected prices.

Even thought the Bank of Japan increased its key rate, there might not be any affects related to the increase immediately as it takes time for markets and sectors to feel anything related as again there might not be any immediate affects or there might be none at all as the rate increase might be too small to notice any real tangible results, as that happens from time to time.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260619/p2g/00m/0bu/012000c