Rising cost of living damps the nation's economic expansion
(From The Japan Times May 20 issue)

生活費上昇で深刻化する日本景気減速

Price rises are hitting consumers and enterprises. Among consumer goods, rises in food and energy prices are conspicuous, and companies hit by higher raw materials costs hesitate to raise wages.

These factors tend to depress consumer demand, thus damping the nation's economic expansion. Higher costs for imported resources are fueling the rise in prices. The government needs to act with greater urgency and work together with other nations, especially to counter moves in some countries to restrict food exports.

Behind these price rises are increases in the cost of raw materials in overseas markets. Crop failure due to climate change and an increasing use of cereals for biofuel production are tightening cereal supplies.

Growing demand in such countries as China and India has stretched resources. Speculative money flowing into commodity markets is pushing up prices. Japan is in a difficult position.

According to a survey by the Cabinet Office in February, 42.3 percent and 40.9 percent of those polled think the situation is worsening for prices and food supply, respectively &8212; a threefold increase from a January 2007 survey. The government should come up with measures to improve the nation's food self-sufficiency.

物価上昇が消費者と企業を直撃している。日用品では食料とエネルギー価格の高騰が目立ち、企業は原料費上昇で賃金引上げに消極的だ。

その影響で消費者需要が弱まり、景気拡大は鈍っている。政府は早急に他国と協力して、食料輸出規制をしている国々に自粛を求めるべきだ。

高騰の背景には、海外市場での原料高がある。穀物は気候変動で収穫量が減る一方、バイオ燃料としての需要が拡大し、不足に陥っている。商品市場への投機資金流入が価格急騰を招き、日本は苦境に立たされている。

内閣府の世論調査によると、日本で悪い方向に向かっている分野は「物価」が42.3 % 、「食糧」が40.9 % と、昨年1月比で3倍に急増した。政府は食料自給率向上にむけた具体策を打ち出すべきだ。