If you live here in Japan (or have been in Japan recently), you’ve probably noticed that prices are creeping up everywhere — at the supermarket, at restaurants, and even on utility bills. The latest buzzword? “Cabbage shock” — because a head of cabbage now costs three times more than it did last year! (That’ about ¥350, or US$2.35, in case you’re wondering…)

But of course, it’s not just cabbage. Inflation is hitting food, electricity, and everyday essentials — and many of us are feeling it.

What’s Behind the Rising Prices?

In my Japan Today Spotlight episode on the subject, I break down what’s driving Japan’s price hikes:

• Food Prices Are Soaring – Rice is up 70%, and electricity bills have jumped 18%. Not great news for anyone who enjoys eating… or having the lights on.
• The Weak Yen – Japan relies heavily on imports, and with the yen being so low, imported goods — from groceries to fuel — are getting much pricier.
• Extreme Weather & Crop Issues – Last summer’s heatwave, heavy rain, and even record snowfall have damaged crops, making fruits and vegetables more expensive.
• Shrinkflation & Business Struggles – Have you noticed snack packages getting smaller while prices stay the same (or go up)? That’s shrinkflation. Restaurants are also serving smaller portions, and some are even closing down because they just can’t keep up.

How Are People Adapting?

It seems like everyone has their own strategy to deal with higher prices. Some are cooking at home more  (this is a big change for younger Japanese adults who haven’t started families — more on that in an upcoming post!). Others are hunting for late-night supermarket discounts, and I’ve even had people tell me in the comments that they are now bicycling long distances to budget stores like Gyomu Super to save a few yen.

Meanwhile, tourists keep convenience stores busy, even as locals find them a bit pricey.

Watch the Full Breakdown

I go into more details in the Japan Today Spotlight video. If you’re curious about how Japan’s inflation is playing out, check it out here:

Watch: Japan’s Rising Prices – What’s Causing Inflation?

Cabbage Shock?! Japan’s Prices Are Surging — Here’s Why! Watch now to see what’s driving the rising cost of living.

What’s Next?

The government is trying to push for wage increases, but so far, salaries aren’t keeping pace with rising prices. With more price hikes expected and big labor negotiations coming up, we might be in for more surprises.

How are you handling higher prices in Japan (or wherever you are)? Have you changed your spending habits? Let’s chat in the comments!