A prolonged heatwave across Japan is squeezing household budgets, with analysts warning of a new round of “heatwave inflation.” Retail data compiled by Nikkei show average nationwide prices for tomatoes reaching ¥816 per kilogram, 19 percent above seasonal norms, while carrots cost ¥589 per kilogram, 17 percent higher. Broadcast reports from supermarkets in Tokyo put cucumbers, tomatoes and other summer produce 30–40 percent above typical levels as drought and high temperatures curb yields. The surge in fresh-food costs is expected to ripple through broader grocery bills. Economists cited by TBS and the Sankei Shimbun estimate that a family of four could see food expenses climb by about ¥15,000 a month, or roughly ¥100,000 (US$690) over the course of a year, if current price levels persist. Livestock producers are also grappling with heat-related stress on pigs and poultry, adding upward pressure on pork and egg prices and compounding the hit to consumers. The strain on supply is not confined to Japan. U.S. Bureau of Labor Statistics data released on Thursday show wholesale prices for fresh and dry vegetables jumping 38.9 percent in July, the steepest monthly increase on record and responsible for about a quarter of the rise in final-demand goods in the Producer Price Index. The parallel spikes underscore how extreme weather is emerging as an additional driver of global food inflation even as central banks struggle to tame broader price pressures.
Wholesale vegetable prices rose 38.9% in July, the biggest jump on record. Great job, Donald. https://t.co/xaor1svIyP
Here are the top contributors to month-over-month inflation from today's PPI report: 🥗 Fresh and dry vegetables +38.9% ⛽ Diesel fuel +11.8% 🥛 Raw milk +9.1% 🛠️ Machinery & equipment wholesaling +3.8% 🛫 Jet fuel +3.6% 📊 Securities brokerage, investment advice +3.2% 🥩 Meats
One notable part of this PPI report: Prices for fresh and dry vegetables increased by +38.9% (!) https://t.co/luDbC0r5Yr