Japan's Food Prices Soar Amid Oil Price Spike and Weak Yen

High oil prices and a weak yen are driving up food costs in Japan. According to Hideo Kumano, head economist at the ABC Economic Research Institute, energy costs are rising due to higher oil prices, leading to increased packaging material and delivery expenses for food manufacturers.

The number of food items projected to see price increases in September has more than tripled compared to last year, with 4,923 items expected to hike in price. This marks the first time since April 2025 that the monthly tally of price hikes has exceeded 4,000.

Kumano warns that prices will continue to rise through the end of the year and possibly until March next year due to the lag effect of price increases passing on at each stage of production. He also notes that prolonged high inflation threatens to widen the wealth gap in Japan and fuel political uncertainty.