The surge in fresh food and rice prices has increased household expenses and weakened consumer confidence.
TOKYO, JAPAN (MERXWIRE) – Tokyo’s consumer prices saw a sharp rise in February, with the Consumer Price Index (CPI) reaching 109.7-an increase of 2.9% compared to the same month last year, according to the latest report from Japan’s Ministry of Internal Affairs and Communications. Fresh food prices led the surge, with an index of 140.1, reflecting a significant 18.4% year-on-year jump. Vegetables and fruits were among the most affected categories, increasing by 26.2% and 21.4%, respectively. The price of cabbage nearly doubled, soaring by 92.4%, while citrus fruits rose by 32%, placing additional financial strain on households.
The sharp increase in vegetable prices is primarily attributed to poor harvests caused by unfavorable weather conditions. A survey conducted by Japan’s Ministry of Agriculture, Forestry and Fisheries on significant production areas and wholesale companies showed that due to insufficient rainfall last winter, leafy vegetables such as cabbage, lettuce, and Chinese cabbage showed apparent signs of poor growth, and shipments were lower than normal. The rising cost of fresh food has had a cascading effect on overall prices, prompting major food manufacturers to consider increasing prices on processed foods. Restaurants and businesses are also adjusting their pricing to offset rising procurement costs.
Beyond fresh food, staple ingredient prices have continued to climb, with rice prices reaching an unprecedented 79.4% increase. This marks the fifth consecutive month of record highs since rice price tracking began in 1971. The rising cost of rice has led to a surge in demand for alternative rice-based products, with sales of rice balls rising by 9% and frozen rice increasing by 11.5%. These escalating prices have put additional pressure on consumers, contributing to growing concerns about household expenses.
Looking ahead, the Ministry of Agriculture, Forestry, and Fisheries has forecasted wholesale vegetable prices for March at the Tokyo Central Wholesale Market. While cabbage and onion production is gradually recovering, it is unlikely to return to normal levels in the short term. Although cabbage shipments are expected to improve from mid-March, overall monthly shipments are still projected to fall below average. Prices for other vegetables, including radishes, green onions, and additional cabbage varieties, are also anticipated to remain above standard levels.
Further compounding inflationary pressures, a survey by private research firm Teikoku Data found that 2,343 food items saw price increases in March, surpassing the 2,000 mark for the first time in five months. Processed foods accounted for the largest share of increases (1,381 items), followed by alcoholic beverages (534 items) and dairy products (284 items). The study also noted that the total number of food price hikes in 2024 surpassed 10,000 items four months earlier than in 2023, indicating a faster pace of inflation compared to the previous year. As food prices continue to rise, both businesses and consumers are bracing for prolonged economic challenges in the months ahead.
With food prices continuing to climb, consumer confidence has begun to weaken. The rising cost of frequently purchased essential goods is weighing heavily on household finances, causing growing uncertainty about future consumption trends. Many consumers are adjusting their spending habits, with analysts warning that prolonged inflationary pressures could further dampen economic sentiment.