Japan faces food price surge this summer.

Japan faces food price surge this summer. Middle East disruptions have cut naphtha supplies, driving up plastic packaging costs for manufacturers. Small and mid-sized food producers are already feeling pressure to raise prices on everything from confectionery to beverages. The shortage stems from prolonged energy flow disruptions via the Strait of Hormuz, affecting polypropylene and polyethylene suppliers across Asia. Japan's heavy reliance on Middle Eastern petroleum imports leaves the nation particularly vulnerable. Core consumer prices already rose 1.8% in March, exceeding economist expectations, while the measure excluding fresh food and energy climbed 2.4%, surpassing the Bank of Japan's 2% inflation target. This supply chain disruption threatens to accelerate inflation further and squeeze already-tight household budgets across the country.