Japan Ramen Prices Continue to Climb
In Tokyo, rising ramen prices are causing challenges for shop owner Taisei Hikage. He isn’t struggling to attract customers but to manage the soaring costs of ingredients and fuel. Since opening his shop a year and a half ago, Hikage has had to raise prices three times. His best-selling “Special Ramen” is now 1,250 yen ($8), up 47% since he started. Yet, despite these increases, Hikage still feels the pressure of rising expenses.
“Ramen was once affordable comfort food,” he shares while preparing dishes. “Now it’s becoming too costly for many.”
Inflation and Japan’s Election
The cost-of-living crisis, seen in rising ramen prices, has become a focus for voters in the upcoming election. The ruling Liberal Democratic Party and opposition parties have proposed measures to help struggling businesses and households. Prime Minister Shigeru Ishiba, a known ramen enthusiast, is under pressure to tackle inflation. Voters want strong action as they see rising costs as a sign of deepening economic strain.
Growing Bankruptcies Among Ramen Shops
While Hikage’s shop sees long queues daily, other ramen vendors face financial hardship. In the first seven months of this year, 49 ramen shop operators went bankrupt. This trend may soon surpass the 2020 record, reflecting the impact of inflation on small businesses.
Impact of Import Costs and Yen Depreciation
Hikage prioritizes using domestic ingredients. However, many ramen shops rely on imports, and Japan’s weaker yen has increased costs for essential items like flour. This issue, coupled with global energy price spikes, adds to the financial strain.
Economic Experts Warn Against Too Much Support
Bankruptcies in Japan rose 18.6% from last year. Economist Toshihiro Nagahama notes that companies unable to adjust are “weeded out” in this inflationary period. Yet Nagahama warns that too many government handouts could hurt the economy by keeping “zombie firms” afloat.
Hope for Positive Change
For now, Hikage focuses on delivering quality dishes despite rising costs. “Our goal is to endure and keep serving something delicious,” he says, hoping the election will bring needed relief.
Source: Reuters
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