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
