Japan has always been told "deflation, deflation, deflation.
This year, however, prices have continued to rise.
Moreover, the prices of utilities, which are directly related to our daily lives, have gone up tremendously.
Water rates in my area went up 13% in one fell swoop in April. The reason for the increase is said to be the cost of repairing the aging water and sewage systems.
Electricity rates have increased by 24%. The basic rate itself has not changed, but the increase is due to increases in the unit price of fuel adjustment and the unit price of the levy for promoting renewable energy.
Tokyo Gas rates also rose 27.7% compared to last May. In the case of Tokyo Gas, the cost of raw materials is revised monthly and is slowly rising, so it is hard to notice, but when compared to the previous year, it is surprising to see how much it has risen.
We know from news reports that gasoline prices have been rising, but the 14.7% increase compared to last April is cute compared to the rate of increase in electricity and gas prices.
The price of groceries also continues to rise. Aside from fresh produce, which changes in price on a daily basis, processed food prices continue to rise.
As for beverages, Asahi Beer announced yesterday that it will raise its retail prices by 6-10% starting in October. This is the first time in almost 15 years that canned beer prices have been raised, which may indicate that the tide has turned from deflation to inflation.
Tori Kizoku, an izakaya group, will also raise its flat price by 7% to 350 yen starting April 28. Since the previous price hike is said to have greatly reduced the number of customers, this price increase must have been the result of much deliberation.
Amazon music will also increase its price from May 5. The monthly plan is 100 yen more. The annual subscription plan is 1,000 yen.
I had been subscribed to a monthly plan, but my contract expires at the end of April, so I switched to an annual plan before the price increases.
In addition, the employment insurance premium rate will be increased in April and October. The rate is 0.4%, but since labor and management split the premium, the insurance amount will increase by 0.2%, or 200 yen per 100,000 yen. The increase is due to the increase in the amount of employment adjustment subsidies paid due to the Corona disaster. China's Wuhan corona disaster has spread great misfortune throughout the world.
If the yen continues to depreciate, the prices of goods and services will rise even more.
If wages rise accordingly, there will be no problem, but it will not be easy.
In the midst of such a rush of price hikes, there is one thing that will be lowered.
That is the pension, which will be reduced by 0.4%. Based on calculations for a model household published by the Ministry of Health, Labor and Welfare, this means a reduction of 10,836 yen per year.
If prices continue to rise and incomes do not increase (or decrease in the case of pensioners), consumption will decrease rapidly and the economy will deteriorate rapidly.
In other words, the Japanese people will become poorer and poorer.
