Global inflation is impacting Japan’s traditional “hanami” cherry blossom picnics, according to a report by the Dai-ichi Life Research Institute. The index tracking food and drink costs has risen by 25% since 2020.
During late March to early April, Japanese people gather in parks and riverbanks under blooming cherry trees with family and friends for “hanami,” an event that is significant for many. However, rising raw material costs have led companies to increase prices on a variety of food and beverages.
Hideo Kumano, chief economist at Dai-ichi Life Research, updated his index created in 2020 using data from February. The cost of popular “hanami” items like rice balls, bento boxes, fried chicken, potato chips, and beer has increased by 25% since the base year of 2020.
“A weak yen and rising global commodity prices are causing cost-push inflation in Japan,” Kumano explained. “Hanami is clearly facing the negative effect of this global inflationary trend.”
Since the Ukraine war, Japan’s inflation rate has risen due to a falling yen and increased costs for raw material imports. Core consumer inflation remained above the Bank of Japan’s 2% target for nearly four years before slowing to 1.6% in February, largely due to government fuel subsidies.