Japanese people 'tighten their belts' because of inflation

Rising prices are forcing Japanese consumers to tighten their spending and look for bargains.

Rising prices pose a challenge for Japanese policymakers. (Source: Bloomberg)

Inflation in Japan is running at 4%, but people feel the cost of living is rising much higher than that.

Taemi Komiyama, a 35-year-old housewife, said her family's monthly food expenses have increased 25 percent from last year to 50,000 yen (about 336 USD).

Prices of staples such as rice, eggs and vegetables have all increased sharply. To save money, Ms. Komiyama’s family has stopped eating out and prioritized buying frozen vegetables instead of fresh ones.

In 2024, Japanese companies raised wages for their workers. However, this was still not enough to compensate for the price increase.

Real wages in 2024 fell 0.3%, according to Japan's Ministry of Health, Labor and Welfare.

According to Teikoku Databank, prices of about 20,000 items in the food industry are expected to continue to rise this year, even higher than last year.

Companies are struggling too.

For example, Skylark Holdings Co., which operates the "Gusto" family restaurant chain, expects inflation to cut operating profit by about 11.2 billion yen in the current fiscal year.

The company estimates that raw material costs will triple from 1.7 billion yen to 5.1 billion yen. Rice in particular is expected to account for a large portion of this, about 2.2 billion yen.

The rising price situation poses a challenge for policymakers in the Land of the Rising Sun.

Rising food prices are a sensitive issue in Japan as the country becomes increasingly dependent on imported goods.

The weak Yen also contributes to the increase in import prices, making goods much more expensive.

Source: https://baoquocte.vn/nguoi-dan-nhat-ban-that-lung-buoc-bung-vi-lam-phat-306223.html