ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Rising Food Prices in Japan Put Pressure on Year-End and New Year Holiday Meals

By: MerxWire

With food prices hitting record highs, Japanese families face tight budgets for Christmas and New Year meals. The Kanto Smart Living Cooperative advises taking advantage of supermarket discounts, buying essentials in advance, and using stable-priced seasonal vegetables to ease financial pressure while keeping festive celebrations on track.


High prices put pressure on New Year’s meal preparations. (Photo via MERXWIRE)

TOKYO, JAPAN (MERXWIRE) – December marks the end of the year, and Japanese consumers begin shopping for Christmas and New Year’s holidays, but soaring prices are weighing heavily on their finances. The preliminary November Consumer Price Index (CPI) for Tokyo’s 23 wards (excluding fresh produce) rose 2.8% compared to the same period last year, with food prices being the most directly felt source of pressure.

According to the latest survey by the private research institution Teikoku Databank, 20,609 food and beverage items in Japan announced price increases this year (including December), exceeding 20,000 items for the first time in two years, a significant increase of 64.6% compared to approximately 12,500 items last year. Condiments, alcoholic beverages, and processed foods are among the products affected, with the primary reason being rising raw material costs, followed by increased logistics costs.

Although the number of items expected to see price increases by slightly over 1,000 by April next year is far lower than the same period last year, industry insiders believe that the pressure of high prices will continue to influence people’s year-end and New Year’s purchasing behavior.

The Ministry of Agriculture, Forestry and Fisheries recently released its December wholesale price forecast for 15 major vegetables delivered to the Tokyo Central Wholesale Market. Tomatoes, bell peppers, potatoes, and onions are expected to be more than 30% higher than the average price over the past five years. Abnormal weather continues to impact harvests; for example, the high temperatures and low rainfall in summer have resulted in smaller Hokkaido potatoes and onions, while the sudden cold snap in autumn and winter has slowed the growth of some vegetables, further driving up prices.

Another essential commodity, eggs, also continues to reach record highs. ja.z-tamago.Co.,Ltd. stated that the average wholesale price of medium-sized eggs in the Tokyo area reached 340 yen per kilogram in November, the highest record since the statistics began, marking the 13th consecutive month of year-on-year increases. With increased demand for Christmas cakes and oden, prices are expected to remain high until the end of the year.

The restaurant industry is also feeling the impact of rising costs. The manager of a family-run restaurant in Tokyo stated, “Tomatoes, eggs, and potatoes are almost all more expensive than last year. We’ve tried our best to absorb the costs by adjusting portion sizes and purchasing methods, but the profit margin for some dishes has been pushed to the bare minimum.” He admitted that if prices remain high, they will likely have to reassess their menu pricing next year.

A housewife living in Kanagawa Prefecture with a family of three said in an interview, “Preparing ingredients for Christmas and New Year’s this year has really cost more than last year. Tomatoes and potatoes are noticeably more expensive. I originally planned to cook a more elaborate meal, but now I can only adjust the menu and switch to cheaper vegetables.” She admitted that the anticipation of holiday shopping in the past has now turned into pressure to control the budget.

To help people prepare festive meals amidst high prices, the Kanto Smart Living Cooperative suggests taking advantage of time-limited discounts at supermarkets and hypermarkets, purchasing essential ingredients in advance in batches, and adjusting dishes with seasonal, stable-supply, and price-stable vegetables instead of items whose prices have surged due to inclement weather. Furthermore, family gatherings can be organized by having each person bring a dish to share the burden, maintaining the festive atmosphere while effectively reducing the financial burden on the organizers.

With food prices reaching new highs, Japanese families are finding their budgets tight when preparing festive meals and New Year’s dishes. Year-end shopping amidst high prices has become one of the most pressing social issues this year.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  227.35
+0.59 (0.26%)
AAPL  273.67
+1.48 (0.54%)
AMD  213.43
+12.37 (6.15%)
BAC  55.27
+1.01 (1.86%)
GOOG  308.61
+4.86 (1.60%)
META  658.77
-5.68 (-0.85%)
MSFT  485.92
+1.94 (0.40%)
NVDA  180.99
+6.85 (3.93%)
ORCL  191.97
+11.94 (6.63%)
TSLA  481.20
-2.17 (-0.45%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.