Japan is currently facing a significant increase in food prices, with the retail price of food rising 4% compared to the same period last year, hitting a new high in 41 years and one month.

The high retail prices of food are expected to further undermine the purchasing power of consumers, making it difficult for the Japanese people to survive this winter. The price of goods in Japan has been increasing due to high energy prices and the depreciation of the yen, with the largest increase seen in cooking oil, up 23%, and pasta, up 17.1%.

This increase in food prices will have a significant impact on household spending, especially for lower-income households. A survey by Japan's Ministry of Internal Affairs and Communications related to household income and expenditure shows that the lower the income class, the more they will reduce consumption because of the increase in commodity prices.

Elderly people living alone, who used to rely on annuities, have also reportedly recently started to receive free ingredients at food banks.

Many businesses have cited the rising price of raw materials such as wheat and cooking oil as the reason for the price increase, while merchants have blamed the soaring price of international crude oil for increased costs in transportation and packaging.

Real wages, which take into account the impact of price increases, showed a year-on-year decline as of August. Against this backdrop, the prices of many food items rose in September, including bread on toast, which rose 14.6%, and mayonnaise, which rose 14.2%.

The increase in food prices is not the only issue facing Japan, as household durables rose 11.3%, a record high since March 1975. Among them, washing machines (including washing and drying machines) rose 32.1%, and home air conditioners rose 14.4%.

In addition to the high price of raw materials and the depreciation of the yen, the sale of new high-priced goods by businesses was also one of the reasons. Energy prices rose 16.9%, with electricity costs up 21.5% and city gas costs up 25.5%. Accommodation prices rose by 6.6% due to the relaxation of movement restrictions associated with the new crown epidemic.

Koya Miyamae, the senior economist at SMBC Nikko Securities, predicted that the index increase in October could reach 3.5% due to the sharp rise in food prices. He also said that thereafter, from January to March next year, the momentum of rising resource prices will be suspended, and the index will be in the range of 2.5% to less than 3%.

The government needs to take immediate action to address the rising food prices, such as implementing measures to stabilize the cost of raw materials, improving productivity in the agricultural sector, and investing in food security measures.

The government could also consider providing financial assistance to households with low incomes, such as subsidies or tax breaks. Additionally, the government should promote a sustainable food system that prioritizes local food production and reduces reliance on imports.

The current increase in food prices in Japan is a significant concern for the Japanese people, particularly those with low incomes. The government needs to take swift action to address the issue and implement measures to stabilize the cost of raw materials, improve productivity in the agricultural sector, and invest in food security measures.

A sustainable food system that prioritizes local food production and reduces reliance on imports should also be promoted to ensure long-term food security for the Japanese people.