Japan's cherry blossom season is marred by rising inflation, affecting tourists and locals alike, as economic concerns overshadow festive fun.

Japan’s cherry trees are in full bloom, heralding the arrival of spring and the beginning of hanami picnics filled with food, festivities and fun. But stubborn inflation, the economic fallout from the war in Iran and looming unsettled weather have muted excitement for this year’s gatherings – a time-honoured tradition that is also popular with tourists. A survey by Intage found that 38 per cent of Japanese were planning to attend a cherry blossom viewing event with family, friends or colleagues,...