Japan is facing significant economic challenges as rising costs affect various sectors, particularly housing, food, and logistics. With the peak moving season approaching, many individuals are feeling the effects of increased relocation expenses, and concerns are mounting over food prices, especially rice, amid inflationary pressures.
The end of March is traditionally known as the peak season for moving within Japan, as many individuals begin new studies or transfer to new jobs. Nonetheless, this year has brought about concerns for many "moving refugees" who dread not being able to secure desired moving dates. With logistical costs expected to rise this season, Minister of Transportation Hiromasa Nakano urged residents to avoid the usual busy timeframe.
During a press conference on February 12, Nakano remarked, "We'd like to ask people to avoid the busy season as much as possible and help to spread out moving periods to reduce the workload of truck drivers and to assure smooth moves." This statement was particularly timely as the period between March 15 and April 6 is projected to be exceptionally busy this year.
The so-called "2024 problem"—worker shortages within Japan's logistics industry—has been exacerbated by new labor regulations limiting overtime hours. The transport ministry has expressed fears of increased strain on logistics as demand surges during the peak moving season.
According to data from Bizlink Inc., which surveyed 16 domestic moving companies, half of those companies reported increased personnel expenses attributable to the labor shortage. This workforce issue has also led to clients being unable to accommodate as many moves per day. Over 50% of the surveyed movers indicated their costs for relocating spring would be higher compared to last year, primarily due to the rising prices of crude oil and the persistent weakening of the yen against other currencies.
Upon closer examination, many residents are employing strategies to avoid being classified as "moving refugees." The most effective approach, as indicated by 75% of respondents, is to divide their plans to steer clear of the busy moving season. Others are being proactive, with around 37.5% opting to place moving requests as soon as they know they will be transferring or preparing for new studies.
Meanwhile, the rising price of rice—a significant staple—has surprised many Japanese expatriates living in the United States. Prices there for Japanese rice brands, such as “Nishiki,” are significantly lower than those back home. For example, this brand sells online for $17.99 for 15 pounds, equaling about 2,000 yen for five kilograms, which is considerably less than the ¥3,892 average retail price observed for the same quantity of rice within Japan.
One expatriate residing in Maryland shared her disbelief upon learning today’s cost: "I can't believe it. If 5 kilograms cost nearly 4,000 yen (about $27), you'd expect it to be fairly high-grade." Inside the U.S., demand for such rice has surged, particularly among Japanese restaurants and consumers, who prefer its sticky texture.
Inflation is radically shaping the food market with cabbage prices soaring to over 500 yen per head (approximately $3.30) within Japan, yet the same vegetable can be sourced for only about $3 for 3.8 pounds from Asian supermarkets abroad. Japan's inflation rate climbed to 4.0% as of January 2025, driven partly by these rising food costs, including rice.
Teikoku Databank Ltd. recently reported an average increase of 16% across 2,343 tracked food and beverage items set for March. Notably, the processed food category, which includes popular items like frozen foods and chilled noodles, will see the most significant rises. The total number of announced price hikes for 2025 has exceeded 10,000, marking four consecutive years with over ten thousand items affected.
According to Teikoku Databank, prices are surging primarily due to higher costs for raw materials, compounded by logistical and labor costs. "The momentum of price increases in food and beverage costs has significantly strengthened compared to the previous year," noted the report. The continued depreciation of the yen has also driven prices up substantially, reflecting the mounting pressures faced by both consumers and businesses alike.
The Japanese government has responded to these challenges by considering the release of stockpiled rice to stabilize rising rice prices, yet uncertainties remain whether this strategy will yield significant relief for consumers. With rising costs now fundamentally altering household expenses and consumption patterns, the challenge to adapt becomes even more pronounced.
For many, particularly those who have historically dealt with deflationary pressures, the shifting economic climate, marked by increased costs of living and staple goods, is proving to be particularly difficult.