News On Japan

How Long Will Food Price Surge Last?

TOKYO - The nationwide consumer price index for fiscal 2025, released today, rose 2.7% from the previous year. Prices have now exceeded the government and Bank of Japan's 2% target for a fourth consecutive year.

Among the sharpest increases were staple food items. Rice prices surged 48.9%, marking the largest rise since comparable records began. Coffee beans climbed 47.0%, onions rose 24.1%, and eggs increased 12.9%.

Even a simple bowl of freshly cooked rice topped with a raw egg is no longer immune from inflationary pressure.

At one long-established diner founded more than 70 years ago, customers continued to crowd in for lunch.

'Compared with other places, the portions are almost double,' one customer said.

'I like this old-fashioned atmosphere,' another said.

But behind the bustling dining room, higher ingredient costs are weighing heavily on management.

'Meat, eggs, fish, breadcrumbs — everything we use has gone up,' said Kazuaki Nemoto of Dousaka Shokudo.

The cost of chicken also rose 7.9% over the year, adding further pressure on restaurants already struggling to hold prices steady.

To cope with rising expenses, the diner began producing its own rice in Ibaraki Prefecture last year. All rice served at the restaurant is now self-grown Koshihikari.

'Rice prices rose so sharply that we decided to start growing it ourselves in Ibaraki,' Nemoto said. 'It is cheaper if we produce it on our own.'

Even so, Nemoto said such efforts are reaching their limit.

'Unless we raise menu prices overall, it will become increasingly difficult to keep the business going,' he said.

Meanwhile, worsening tensions involving Iran have also pushed up global vegetable oil prices, adding another source of inflationary pressure.

With further price hikes expected, the once ordinary promise of affordable and tasty meals now stands at a crossroads in Japan.

Source: TBS

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