Electric bills are higher. The price for a liter of gasoline or diesel fuel has gone up, with costs being passed on throughout the distribution chain. The raising of the consumption tax on April 1 boosted prices at the checkout counter. And certainly the past several months of inclement weather has caused the prices of certain vegetables and other food items to soar.
Such developments are poised to play havoc with the average household budget. According to data released by the Tokyo metropolitan government in mid-September, the price for a head of lettuce had already soared year on year by 86.5 percent (as opposed to 38.4 percent for cabbage). Other increases (all figures in percent) included beef, 16.2; shrimp, 17.9; tuna, 11.2; salmon, 18.2; imported cheese, 12.2; chocolate, 13.8; and ginger root, 25.5.
If these weren’t enough, the decline in value of the Japanese yen, which less than two years ago was soaring high at ¥85 to $1, can’t be ignored. Now that rate is approaching ¥110. While certainly making some Japanese exports more competitive, the downside, reports Shukan Economist (Sept. 26), is that it has pushed up the nation’s international balance of payments deficit to nearly ¥1 trillion per month.
The yen’s decline is also causing a chain reaction. Higher interest rates are pushing more investors to shed their yen holdings in favor of the dollar and other currencies.
More @ The Japan Times
No comments:
Post a Comment