Fruit jelly is being served in place of fresh fruit at some schools in Japan as food prices soar. Local food companies are passing along rising ingredient and production costs to consumers. Low wage growth means consumption trends are changing.
Japanese inflation, which rose 2.1 per cent in May, looks tame compared with countries such as the US. Yet the figure, which excludes food, can be misleading. The average price of cooking oil has more than doubled in the past year. Prices of onions have also doubled. Mayonnaise is up a third while bread and pastries are up a tenth.
Price jumps are partly the result of food manufacturers shifting rising costs to customers — a rare move in Japan. This year marked the first price increase in seven years for companies selling everything from soy sauce to ketchup. The yen’s sharp depreciation has pushed up import costs of raw ingredients alongside logistics costs. Overseas, shortages in export-heavy countries have added to the burden. Prices for produce such as imported bananas and soy beans have all increased.