Japan is facing food inflation, with prices for staples like rice and cabbage rising. The Bank of Japan will monitor consumer inflation data released this Friday, which predicts overall price gains to reach 4% in January, up from 3.6% in December. This may prompt the central bank to raise interest rates faster than initially planned.
For restaurants like Katsumi Shinagawa’s pork cutlet restaurant in Tokyo, cabbage prices are a major issue. As an all-you-can-eat side dish, cabbage is a key component of their menu. With cabbage prices now 2.6 times higher than the five-year average, restaurants must adapt to these rising costs.
The increasing food inflation has significant implications for households and businesses alike. The Bank of Japan’s actions will determine how quickly interest rates rise, affecting not only consumers but also the economy as a whole.
Source: https://www.japantimes.co.jp/business/2025/02/20/economy/japan-food-inflation-boj