The consumer price index in April exceeded the same month last year by 2.1%, the highest rate of increase in 13 years and 7 months, excluding the impact of the consumption tax hike.


On the other hand, experts point out that "it has become a'bad price increase'that only costs increase without raising wages."


What exactly does that mean?

Rise over 2% “Crude oil soaring” and “rapid depreciation of the yen” in the background

In April, the consumer price index, excluding fresh food, which is subject to large fluctuations due to weather conditions, exceeded the same month last year by 2.1%.


It is the first time in seven years and one month since March 2015, which was affected by the consumption tax hike, that the rate of increase targeted by the government and the Japan Bank exceeded 2%, and excluding the impact of the consumption tax, September 2008. It is the first time in 13 years and 7 months since the month.

The main factor is soaring crude oil prices.


The graph below shows changes in the growth rates of the "Corporate Price Index," which shows the prices of raw materials and other goods traded between companies, and the "Consumer Price Index," which shows the price movements of goods and services that we buy.

April's corporate price index surpassed the same month last year by 10%, the highest comparable rate of increase since 1981.



In addition to rising raw material costs, rising import costs due to the rapid depreciation of the yen also pushed up the index.



Until now, even if raw material costs soared, we could not pass it on to the prices of familiar products due to concerns about consumer churn due to price increases, and there was a big gap between the rate of increase in the corporate price index and the consumer price index.



However, it has not been able to withstand the soaring purchasing costs, and there have been a series of movements among companies to raise prices of products, and consumer prices have begun to rise in the form of chasing corporate prices.

“Wages” that are not catching up with rising prices

However, wage growth has not kept pace with the recent rise in prices.


According to the Ministry of Health, Labor and Welfare's "Monthly Labor Survey", the average total cash salary per worker in March was 286,567 yen, an increase of 1.2% compared to the same month last year, but the price Real wages, which reflect fluctuations, fell 0.2% to a negative figure.

Prices are rising faster than wages, indicating that households are burdened more.

“Not accompanied by a virtuous cycle of the economy”

The consumer price index has exceeded 2% this time, but the BOJ's current price increase is temporary, mainly due to soaring prices of energy and raw materials, and the BOJ is aiming for higher wages and demand. It is not a stable price increase accompanied by a virtuous cycle of the economy such as an increase in prices.

Governor Kuroda also points out that such rising prices may put pressure on households and corporate profits and cause the economy to slow down, and has indicated that it will continue to carry out large-scale monetary easing as it needs to support the economy.

The main reason for the price increase is the increase in the burden on "food" and "energy" households.

“Food”, which accounts for a large proportion of households, rose 4% overall, the first record rise in 23 years and 5 months since November 1998, excluding the impact of the consumption tax hike.

Cooking oil rose 36.5%

The price of "food excluding fresh food" has risen mainly for items that use imported raw materials due to the increase in global demand and the depreciation of the yen. Compared to the same month last year, cooking oil was 36.5% and hamburgers were It increased by 6.7%.



The price of "fresh food" has also increased significantly.


Tuna rose 17.2% and salmon rose 13% against the backdrop of increased demand for eating out due to the lifting of priority measures such as prevention of spread and rising transportation costs due to high crude oil prices.



Of these, salmon had to fly over Russia for imported goods from Norway due to the tightening situation in Ukraine, and the high transportation costs also led to an increase in prices.



In addition, the rise in "energy" also pushed up the index.

"Energy" increased by 19.1% overall

Due to the soaring crude oil prices, city gas prices rose by 23.7%, electricity costs by 21%, and gasoline prices by 15.7%, respectively, resulting in a significant increase of 19.1% in "energy" as a whole.



Although the rate of increase in “energy” narrowed slightly compared to March due to the effects of government subsidies and other factors holding down gasoline prices, it continues to be the largest factor pushing up the consumer price index.



It can be seen that the burden on households is becoming heavier due to the rise in prices centered on food and energy that are indispensable for daily life.

Yasuko Masuda (64), who lives in Kunitachi, Tokyo, feels the price increase of various products while keeping a household account book every day.


Mr. Masuda is now living with her husband, and she is trying to keep the side dish cost of three meals a day to 1200 yen, but she can not keep her budget due to successive increases in food prices. It is said that there is.

Masuda's husband is about to reach retirement age, so she wants to save as much as she can for her old age.



For this reason, in order to reduce spending as much as possible, we thoroughly devise ways to remove and cut vegetables, and we use raw garbage as fertilizer to grow green beans and Japanese mustard spinach in the garden. In addition, we are making efforts such as reducing the frequency of using cars.



Mr. Masuda said, "It is very difficult for people who keep their household budget to raise the price of things they use every day. The current price is due to various factors such as the rise in import prices, so I'm worried about how long the high prices will continue. "

The lower the income, the greater the impact

The higher the price of food and energy, which are indispensable for daily life, the greater the impact on people with lower incomes.



The graph below shows how much the annual burden of rising food and energy prices will increase compared to 2019 before Corona, by annual income for households with two or more people.

Based on the analysis method of the Cabinet Office, NHK estimated it from the household survey released by the Ministry of Internal Affairs and Communications and the consumer price index in April.



According to this, it can be seen that the annual burden due to the rise in food and energy prices will increase from 64,468 yen to 98,697 yen depending on the annual income.



Let's look at the increase in this burden as a percentage of the annual income.

For example, in a household with an annual income of 2.56 million yen, it can be seen that the annual household burden rate will increase by 2.5% due to the rise in food and energy prices.



The burden rate due to the price increase is about three times that of households with an annual income of 11.93 million yen, indicating that the increase in prices centered on daily necessities has a greater impact on households with lower incomes.

Expert "It has become a'bad price increase'"

Regarding the fact that the inflation rate exceeded 2%, Taro Saito, director of the Economic Research Department of the Nisseikiso Research Institute, said, "I have to say that it is far from the 2% inflation that the Bank of Japan was aiming for. Rising prices means that the economy is good and consumption is increasing, and companies are raising prices to raise profits, which creates a virtuous cycle that leads to wage increases for employees, but unfortunately wages have not risen now. It has become a "bad price increase" that only increases costs. "



On top of that, "The current rise in prices is almost entirely due to the rise in prices of imported goods, which has the same meaning as the transfer of income from Japan to overseas, which is clearly negative for the Japanese economy. Even for households, the prices of electricity, gasoline, and food that are used every day are increasing, so there are places where Japan, which has been accustomed to deflation for many years, is confused. " increase.



Regarding the outlook for prices, "I think the peak of high oil prices and the depreciation of the yen will be around this summer, but it will be a little late for companies to pass on to prices or spread to prices, so it is in the 2% range. Prices will continue to rise throughout the year. In order to prevent the economy from slowing down, we will take measures to stimulate domestic demand by drawing out savings and turning them into consumption, and reflect the rise in prices in wages on the corporate side. It is also necessary to ask for it. "

Sendai specialty beef tongue also increased in price

High prices for imported beef from the United States continue due to rising distribution costs, and specialty stores dealing with Sendai's specialty beef tongue are raising prices one after another.

However, there is a tendency for the number of customers to slow down due to price increases, and we are trying to diversify risks by expanding the handling of domestic ingredients.

According to the Sendai Beef Tongue Promotion Association, which is made at a beef tongue specialty store, the purchase of American beef tongue was about 1,500 yen per kilo due to the impact of the new corona, which reduced the operating rate of processing plants and increased distribution costs. Last year, the price soared to 3500 yen, which is 2.3 times higher.



For this reason, a series of beef tongue specialty stores have decided to raise prices, and among them, a company in Sendai that mainly develops bento boxes has raised the price of bento boxes by about 20% in March, and has stopped selling beef tongue for take-out. I did.



The purchase price of beef tongue, which has been around 2400 yen since the beginning of the year, has risen to about 2700 yen from last month due to the rapid depreciation of the yen, but the number of customers has increased by 10% since the price of bento boxes was raised in March. As it has fallen so much, we are cautious about raising the price of the product again.



The company is expanding the handling of domestic ingredients to replace American beef tongue in order to respond to the depreciation of the yen.

In addition to continuing to sell lunch boxes using domestic pork tongue, which started a year ago, from this summer, wild animal meat such as wild boar and sika deer, "Gibier," will be processed and sold using low-temperature aging technology. , We are trying to diversify risks and diversify management.



Ryoji Fukuyama, president of "Jinchu," said, "Relying on imported ingredients is risky, and I'm wondering if a single beef tongue can keep the company alive. I want to develop my business with a view to it and aim to survive. "

Soaring raw material prices can raise prices

As the prices of raw materials such as wheat flour continue to rise, the noodle factory in Hiroshima City, which manufactures udon noodles and fried noodles, raised its selling price last month.

However, the price increase has had an impact, such as a decrease in sales volume to some business partners.

According to the noodle factory in Nishi-ku, Hiroshima City, which sells udon and yakisoba to supermarkets and restaurants in the Chinese region, the prices of everything related to manufacturing have risen since September last year, and the flour that is indispensable for making noodles is The price has increased by about 25% compared to last year, and the price of noodle packaging bags has also increased by more than 10% due to soaring crude oil prices.



In addition, rising fuel prices have placed a heavy burden on delivery costs.

For this reason, the noodle factory has reviewed the delivery route and devised ways to increase the amount of products loaded per truck in order to reduce costs as much as possible.

However, these measures alone could not absorb the increase in the purchase price, and the selling price of noodles was raised last month.



The price increase per bag of udon is about 2 to 3 yen, but because of the fierce price competition, some of our business partners have reduced their sales volume due to the price increase.



Masaya Hayashimoto, president of "Marubayashi," said, "It's related to production, and the only cost that can be maintained at the current level is the water bill. It's a product that is familiar to customers, so I'd like to limit the price increase as much as possible, but to some extent. I honestly want to raise the price and sell it at a reasonable price. "