- 14 Mar 2002
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- 18,914
Cake prices have risen by roughly 150 yen, and even during the Christmas season, many shoppers are opting for smaller cakes or single slices rather than whole ones. The average price of a Christmas cake this year is 4,740 yen, almost 900 yen more than it was four years ago. The central pressure comes from higher costs for imported ingredients. Belgian chocolate is now about twice as expensive as it was three years ago, while the prices of fruits and nuts have risen by 20 to 30%.
Much of this is tied to the prolonged weakness of the yen. Some shops have looked into relying solely on domestic ingredients, but that has proven difficult, and as long as the yen remains weak, ingredient costs are expected to keep rising. Over the past five years, the yen dropped from around 100 yen to the dollar to the high 150s, recently nearing 155.90. Estimates indicate that the weaker currency alone has added around 87,000 yen to the average household's financial burden.
Much of this is tied to the prolonged weakness of the yen. Some shops have looked into relying solely on domestic ingredients, but that has proven difficult, and as long as the yen remains weak, ingredient costs are expected to keep rising. Over the past five years, the yen dropped from around 100 yen to the dollar to the high 150s, recently nearing 155.90. Estimates indicate that the weaker currency alone has added around 87,000 yen to the average household's financial burden.
Christmas Cake Prices Surge in Japan as Weak Yen Fuels Inflation Fears
A prolonged weak yen and rising prices are pushing up the cost of everything, from daily necessities to seasonal treats, prompting Japan’s central bank—often described as the nation’s “guardian of prices”—to step in. The Bank of Japan is trying to curb the weak yen and inflation through interest...
newsonjapan.com