Over 2,400 food items will rise in price in Japan in August - by more than 80% than in the same month in 2025. Tokyo-based business information research center Teikoku Databank reported this on its website.
The rapid rise in prices is related to the rise in oil prices due to the crisis in the Persian Gulf, which leads to an increase in the cost of transportation and plastic packaging materials. In total, as reported in the center's report, over 11 months of 2026, more than 18,000 food products will become more expensive in the country.
To combat rising prices, Japanese Prime Minister Sanae Takaichi plans to reduce the consumption tax on food sales from the current 8% to 1% from April 2027. This measure will be in effect for two years. The prime minister also intends to make cash payments to representatives of the population with low and middle incomes. According to her, this should temporarily “reduce to practically zero” their tax burden on food purchases. Such a measure, reports Kyodo news agency, will lead to a reduction in tax revenues in the state budget by about 10 trillion yen ($62.5 billion at current exchange rates) over two years.
The proposals of the head of government have been criticized by the opposition, as well as some influential figures from the ruling party. They were, in particular, openly condemned by former Defense Minister and Foreign Minister Taro Kono, who pointed out the financial unsoundness of the temporary tax cut plans.