Japanese electricity prices have dropped to their lowest level since July ahead of the holiday season.

Due to the weather forecast indicating lower temperatures, the national holiday on Tuesday, and the upcoming summer vacation later this month leading to a decline in electricity demand, Japan's spot electricity prices have fallen to their lowest level since early July. Data from the Japan Electric Power Exchange shows that the nationwide electricity price for the next day dropped by 41% on Monday, to 11.37 yen per kilowatt-hour. The Japan Meteorological Agency and commercial meteorological organization Vaisala predict that the weather in Tokyo and the entire Kanto-Koshin region will become mild from this weekend to early next week, with temperatures slightly below the annual average during this period. The Japan Meteorological Agency forecasts daytime high temperatures in Tokyo to reach 28-30 degrees Celsius by Sunday. The Kansai region is also expected to experience a brief cooling period in the coming days. Major manufacturers such as Honda and Nissan will suspend production, partly due to the summer vacation that begins on August 8, and partly due to disruptions in component supply caused by the Kumamoto earthquake. The Obon summer holiday in Japan typically occurs in mid-August.