The massive rise in prices has already reached Japan

The massive rise in prices has already reached Japan in recent weeks. To a country where the prices of many consumer goods have hardly changed for several decades. Japanese consumers and businesses are worried about a sharp rise in prices, especially for food. The price of coffee or beef has risen by several percent recently. The local tradesmen are afraid of the future. The Japanese are picky about rising prices. "For us in Japan, wages have not changed much for several years. If prices continue to rise so sharply, I will lose my business, "said Shizuo Mori, who has owned a small café in Tokyo's Toranomon district for decades. According to a 78-year-old Japanese businessman, costs have risen enormously in the last three months, for example in the case of coffee. It has been selling a cup of coffee to its customers for 400 yen for a long time. But now he risks having to become more expensive after a long time and fears the consequences, especially when the Japanese wages and salaries do not rise in the long run. "My customers don't have much revenue. When I increase the prices of my products, almost everyone stops coming here, "said Shizuo Mori, whose shop offers a variety of sandwiches, toast and sweet puddings in addition to coffee. His coffee costs have risen by as much as five percent in the past three months. Japan is very specific in the context of other countries in the world. In the last thirty years, this country has been characterized by very weak economic growth and low inflation. Some periods have even been deflationary in recent years, and prices have fallen slightly over time. The Japanese have not been used to rising prices for years. As in other countries of the world, after the covid-19 pandemic, production costs are rising. Surprised are mainly younger Japanese, who have not yet experienced a significant increase in prices in their lives. "It's scary. Real incomes are falling for us. Taxes are rising. People are poor here, "said 23-year-old Yuka Urakawa, who has seen a rise in beef prices in recent weeks. This rose by 7.2 percent year on year. Although Japanese inflation is still modest by global standards, it is almost impossible for prices in the world's third largest economy not to rise further in the foreseeable future. For example, for the first time since 2008, Meiji Holdings has already increased the price of its margarines by almost thirteen percent. Similarly, Megmilk Snow Brand, which has increased the price of its dairy products by about twelve percent. However, some Japanese companies are cautious about raising prices. "If we rise in price, demand will fall. The Japanese are very sensitive to price increases, "added Hiroaki Muto, an economist at the insurance company Sumitomo Life.