Living cost increase in Japan due to Weak Japanese Yen

Over the past few years, the weak Japanese yen has quietly but steadily reshaped everyday life in Japan. What once felt like minor price adjustments have now turned into noticeable increases across essentials, travel, and household expenses. For many residents, the impact is no longer theoretical—it’s felt every time they pay a utility bill or shop for groceries.

One of the most immediate effects of a weak yen shows up in import costs. Japan depends heavily on overseas sources for energy such as crude oil, natural gas, and coal. When the yen loses value, these imports become more expensive, and that cost is quickly reflected in higher electricity and gas bills. Food prices have followed a similar path. Since a large portion of Japan’s food is imported, a weaker currency directly translates into higher grocery bills, even for everyday staples.

Consumer goods have not been spared either. Many items people rely on daily—clothing, electronics, and household products—are either imported or manufactured using imported components. As production and import costs rise, companies often pass those increases on to consumers. What used to be affordable essentials now come with a noticeable premium.

Travel and transportation costs have also climbed. Within Japan, higher fuel prices have pushed up the cost of air travel and gasoline, making even domestic trips more expensive than before. For international travel, the impact is even more pronounced. Japanese travelers abroad find that hotels, meals, and shopping cost significantly more, simply because the yen doesn’t stretch as far as it used to.

Small and medium-sized businesses are feeling the pressure as well. Many rely on imported raw materials or goods, and the weak yen has driven up their operating costs. To survive, these businesses often have little choice but to raise prices, which ultimately affects consumers and contributes further to inflation at the local level.

Perhaps the most difficult consequence is the decline in purchasing power. For people whose incomes have not increased in line with rising prices, daily life has become more financially challenging. Pensioners and low-income households are especially vulnerable, as fixed or limited incomes make it harder to absorb higher living costs.

This situation is made worse by Japan’s long-standing issue with slow wage growth. While expenses continue to rise, salaries have remained relatively stagnant for years. The gap between income and cost of living keeps widening, placing increasing strain on household budgets.

In response, both the government and businesses have taken steps to ease the burden. Subsidies have been introduced to offset rising energy and food costs, offering some short-term relief. There has also been renewed emphasis on encouraging domestic production to reduce dependence on imports. At the same time, the Bank of Japan has continued its ultra-loose monetary policy, a strategy aimed at stimulating the economy but one that has also contributed to the yen’s weakness.

Looking ahead, the weak yen is likely to remain a key factor shaping Japan’s economy unless there are major shifts in monetary policy or global financial conditions. While exporters may benefit from the current exchange rate, the pressure on ordinary households continues to grow. For many people living in Japan today, the weak yen is no longer just an economic headline—it’s a daily reality.

Why We Can't Change Our Nation Like Japan?

Why We Can't Change Our Nation Like Japan? This was the heading of a message that I received in one of the WhatsApp groups from an Indian friend. Indeed, there are many points in the list that every Indian should seriously think about and consider. We had a lengthy discussion about this topic in our group. Since I am in Japan, friends in the group were eager to check how far the points are true and the real facts in Japan.

The message I received without any editing is shared below:

Some very good and interesting points about Japan and its people. Read it till the end.

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1. Did you know that Japanese children clean their schools every day for a quarter of an hour with teachers, which has led to the emergence of a Japanese generation that is modest and keen on cleanliness?

2. Did you know that any Japanese citizen who has a dog must carry a special bag to pick up dog droppings? Hygiene and their eagerness to address cleanliness are part of Japanese ethics.

3. Did you know that a hygiene worker in Japan is called a "health engineer" and can command a salary of USD 5000 to 8000 per month, and a cleaner is subjected to written and oral tests?

4. Did you know that Japan does not have any natural resources, and they are exposed to hundreds of earthquakes a year, but it did not prevent her from becoming the fourth largest economy in the world?.

5. Did you know that Hiroshima returned to what it was, economically vibrant before the fall of the atomic bomb, in just ten years?

6. Did you know that Japan prevents the use of mobiles in trains and restaurants?

7 - Did you know that in Japan, students from the first to sixth primary years must learn ethics in dealing with people?

8 - Did you know that the Japanese, even though they are some of the richest people in the world, do not keep servants, and the parents are responsible for the house and children?

9 - Did you know that there is no examination from the first to the third primary level?Because the goal of education is to instill concepts and character building, not just examination and indoctrination.

10. Did you know that if you go to a buffet restaurant in Japan, you will notice people only eat as much as they need without any waste? No wasteful food.

11. Did you know that the rate of delayed trains in Japan is about 7 seconds per year?!!

They appreciate the value of being on time, being very punctual to the minute and second.

12. Did you know that children brush their teeth after a meal at school? They maintain their health from an early age.

13. Did you know that students take half an hour to finish their meals to ensure right digestion? When asked about this concern, they said: These students are the future of Japan.

Do forward, please, as maximum Indians should learn about these good points...

The above message is being shared among Indians for a positive cause, and it deserves appreciation. As a nation, India needs to grow more from now on to reach near the developments that Japan had achieved. It may take many more years. It is a good thing that at least some of the youngsters think about bringing positive changes to the nation.

The change can be forced into the society, but a change will be successful if it comes from the society. People should feel that they need change. Japan also might have gone through such a phase in the past. India should also go through a similar social revolution that would establish positive attitudes deeply at every layer.

In our group discussion, I expressed my doubts about the points mentioned in 3 and 6, but in general I agreed with other points, though many of them are exaggerated.

What do you think? Let me know your opinion in the comment box.

Definition of a Lucky Man and an Unlucky Man

One day, I was talking to my Japanese colleagues and a few friends from London at a restaurant in Dubai about the life in Japan. They were eager to hear about the differences in life in Dubai and Japan. I thought of engaging them with a classic joke that I have heard from one of Japanese language classmates a few years ago when I was in Japan from one of my Japanese language classmates, Alex-san. 

During a coffee break, Alex-San explained what a lucky man and an unlucky man are: 

A lucky man is one who gets American Salary, French Cook, British House, and a Japanese Wife!. An unlucky man is one who gets American wife, French Salary, British Cook and a Japanese House!

Alex-San was curious to humorously describe the lower salary levels in France, but I was curious at the ‘Japanese wife’ and ‘Japanese house’ part of that joke. Though it is a joke based on the stereotyped observations, there are some truth, especially in the sizes of houses/apartments in Japan.

The salary from one of the American MNCs is considered to be the highest, and represents wealth and high earning potential. A French cook is celebrated for exceptional cuisine and gourmet expertise.Traditional British houses are known for their charm and architecture. Japanese wife is stereotyped as being graceful, caring, and family-oriented.

Contrary to the life of a lucky man, the life of an unlucky man is more miserable. The misery starts with an American wife, stereotyped as being demanding and a French salary generally considered lower compared to American salaries, with high taxes. A British cook adds more misery to his life with bland or uninspired cuisine. On top of the above he is living in a Japanese house, notorious for being small and compact with limited living space!

Jokes apart, in general, Japanese apartments are the smallest compared to the ones that we have lived in Dubai, India and Riyadh. There are apartments in Japan that are extremely small, typically ranging from 6 to 20 square meters. Such tiny apartments are popular among students, single professionals, and people on tight budgets, especially in major cities like Tokyo and Osaka, where real estate prices are high. Our apartment in Tokyo was about 88.82 square meters, with three bed rooms, one hall and a kitchen.

Personally, I consider myself was a person having Claustrophobia, fear of closed, tiny spaces. I experience a fear of suffocation or restriction, and desire to escape even at the imagination of a tiny room. Therefore I was conscious not to enter a “Coffin Apartment”, where only a bed and small shelf are provided.

Interestingly, tiny apartments often feature clever, space-saving designs such as lofted sleeping areas, foldable furniture, and built-in storage. They provide minimum amenities such as compact kitchens and bathrooms. Cost-wise, these tiny apartments are are affordable by city standards. In effect, these tiny apartments are still expensive considering their size due to the location.

My Japanese colleague shared his information about Nakagin Capsule Tower in Tokyo, which is an iconic building with ultra-small, modular living spaces, now largely abandoned. The Notorious tiny living apartments in Japan are often referred to as “geki-sema” 激狭 (ultra-small spaces). These are shared houses that are tiny, living spaces with rooms barely larger than a closet. Even, some Japanese people rent booths in internet cafes overnight because they can’t afford apartments.

Often highlighted as Japan’s innovative approach to urban density, these ultra-small living spaces raise questions about the challenges of affordable housing and quality of life in dense urban areas in Japan.