News On Japan

Consumer Prices Rise 2.7% in Fiscal 2024, Third Year Above 2%

TOKYO - Consumer prices in Japan rose by an average of 2.7% in fiscal 2024, marking the third consecutive year of inflation above 2%—a stretch not seen since the bubble economy era. But despite similar inflation figures, consumer sentiment today is far less optimistic.

At a supermarket in Kanagawa Prefecture, shoppers are particularly alarmed by the price of rice.

"It's shockingly expensive now," said one shopper. "Compared to last year, it's doubled. My husband even bought rice on Mercari last year."

Rice, a staple in Japanese households, has seen steep price hikes. In some cases, a 5-kilogram bag without tax is approaching 5,000 yen. Last month, rice prices were more than 90% higher than a year earlier—the largest year-on-year increase in 54 years of recorded statistics.

Other food items, including cabbage, fruit juices, and chocolate, have also seen significant price increases. These developments pushed the nationwide consumer price index up 2.7% in the past fiscal year. It is the first time in 32 years that inflation has exceeded 2% for three consecutive years.

Back in 1988, during the economic boom often referred to as the bubble era, a sense of national prosperity prevailed.

"Japan is a great country right now—absolutely!" a person declared at the time in Tokyo’s Azabu-Juban district.

Back then, wages rose even faster than prices, fueling an era of economic euphoria. But the situation today is starkly different. Wages have not kept pace with rising prices, creating what many view as "bad inflation." Over the past three years, average household costs have increased by around 300,000 yen.

"There's no chance prices will drop," said another shopper. "They'll just keep going up."

A Bank of Japan survey shows that 86% of respondents expect prices to rise further in the coming year.

Minister for Internal Affairs and Communications Seiichiro Murakami emphasized that "relevant government agencies are working together to tackle high prices with full effort."

However, more than 11,700 food items are expected to see price hikes this year, with household expenses projected to rise by another 87,000 yen—suggesting that financial strain on consumers will only deepen.

Source: TBS

News On Japan
POPULAR NEWS

Severe heat is forecast across much of Japan on July 16, with temperatures reaching 37 degrees Celsius in Nagoya and Kofu and sudden thunderstorms threatening the Kanto-Koshin and Tohoku regions through late at night.

Tobu Railway has introduced walk-through facial recognition ticket gates at Ikebukuro and Kami-Itabashi stations on the Tobu Tojo Line, allowing registered commuters to enter without presenting a ticket or IC card.

A system failure at frozen food giant Nichirei has disrupted shipments and logistics, raising the risk of product shortages and temporary closures at some Kentucky Fried Chicken restaurants while also affecting major supermarket and retail chains.

Officials from the Liberal Democratic Party and the Japan Innovation Party have agreed to adopt the Katsuragawa plan for the Obama-Kyoto route of the Hokuriku Shinkansen extension from Tsuruga in Fukui Prefecture to Shin-Osaka.

Japan's environment and weather authorities have issued heatstroke alerts for a record 19 prefectures for July 15, warning that dangerous heat is expected to create an extremely high risk of heatstroke, including the first such alerts this year for the Kanto region.

MEDIA CHANNELS
         

MORE Business NEWS

Japanese manufacturers including Fanuc, Yaskawa Electric, Fujitsu, Hitachi, Kawasaki Heavy Industries and Komatsu announced new artificial intelligence initiatives on July 16 as Nvidia expanded its partnerships with Japan's robotics and industrial sectors.

Tokyo stocks fell sharply on July 16 as renewed selling in South Korean semiconductor shares spread to Japan’s AI and chip-related names, while household inflation expectations hit a record high and kept pressure on the Bank of Japan to maintain a tightening bias.

Japan's core machinery orders fell 12.4% in May from the previous month to 962 billion yen, marking the first decline in two months, the Cabinet Office said on July 15.

The Ministry of Economy, Trade and Industry said it will provide up to approximately 159 billion yen in subsidies to Israel-based chipmaker Tower Semiconductor to expand production capacity at facilities in Niigata and Toyama prefectures.

Japanese companies announced new cybersecurity services, investment products and technology initiatives on July 14, while earnings releases highlighted sharply different conditions across the housing and food-import sectors.

Tokyo stocks rebounded on July 14 after an early fall of nearly 1,000 points, as investors bought back semiconductor and artificial intelligence-related shares while a recovery in South Korean equities and easing Japanese bond yields helped restore risk appetite.

Mitsubishi UFJ Financial Group became Japan's most valuable company for the first time on the Tokyo stock market on July 13, overtaking Toyota Motor as expectations grow that higher interest rates will lift bank earnings.

A debate over whether shorts belong in the workplace is spreading in Japan after Tokyo Governor Yuriko Koike encouraged metropolitan government employees to wear cooler clothing, including shorts, as part of efforts to cope with intensifying summer heat.