Japan food inflation drives Engel coefficient to 44-year high

Japan is experiencing a significant rise in the Engel coefficient, which measures the proportion of household income spent on food. In 2025, the coefficient reached 28.6%, the highest level in 44 years.

Data from the Ministry of Internal Affairs and Communications indicates that food prices, excluding fresh food, rose by 3.0% compared to the previous year. While a Teikoku Databank survey showed the cost of a single serving of curry rice dropped slightly to 349 yen in July 2026—the first time it fell below 350 yen in 11 months—this figure still represents a 5 yen increase compared to the same month the previous year.

Despite efforts by consumers to reduce spending, the persistent trend of food inflation continues to place a heavy burden on household finances.