Advertisement
Japanese struggle with soaring prices despite government aid
- While inflation increased again in February, although more slowly than 42-year high recorded in January, many firms are still not increasing wages
- Analysts suggest inflation slowdown is mainly due to subsidies; price of non-perishable food has soared by 7.8 per cent – biggest increase since 1976
Reading Time:3 minutes
Why you can trust SCMP
6
Government subsidies are helping Japanese households cope with inflation, but the surge in food and energy prices has still left many reeling from the increased cost of living.
Core consumer inflation increased again in Tokyo in February, albeit at a slower rate than the 42-year high of 4.3 per cent recorded in January. And while the 3.3 per cent increase in prices in the key Tokyo market was down a full percentage point, consumers across Japan are still talking of feeling the effects of higher prices as their wages fail to keep pace.
The consumer price index for the capital, which excludes fresh food but includes fuel, surpassed the Bank of Japan’s 2 per cent inflation target for the ninth consecutive month last month.
Analysts say the relative fall from January’s figure is primarily the result of government intervention to provide subsidies to people feeling the pinch.
While national broadcaster NHK reported that electricity bills fell by an average of 1.7 per cent, the first decline since July 2021, gas bills were still more than 20 per cent higher than the previous year.
Advertisement