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Baby goods in Japan facing steeper price hikes

27 Comments

Diapers, formula and other baby items have seen greater price surges than other consumer goods since the beginning of this year, causing a heavy burden on child-rearing households as Japan battles a declining birthrate, a recent think tank analysis showed.

The prices of baby-related goods were up 9.3 percent in June from a year earlier, much higher than the 3.3 percent increase for consumer products overall, and are likely to remain elevated for a while, Hamagin Research Institute said.

The rate of increase in the "baby price index" comprising diapers, formula, infant clothes, dolls and toys, in June was at its highest since January 2015, when prices were significantly lifted by a consumption tax hike.

Price rises for child-rearing necessities excluding dolls and toys came to a slightly lower 7.2 percent in June, but it was still the highest since 1991 when figures necessary to calculate the index became available, it said.

"The increase in the baby price index is expected to remain high for some time as the weakening yen, soaring material prices and increased logistics costs from last year are gradually passed on to consumers," said Yuki Endo, senior researcher of the institute.

In creating the baby price index, Endo used the government's monthly CPI data and extracted the five key childcare-related items.

In a related report highlighting difficulties faced by financially-strapped families raising children, 80 percent of respondents said their budgets had become "very tight" due to recent price surges, a nonprofit organization supporting such families said.

The online survey conducted from late May to early June on 1,538 people by Kidsdoor also found that 85 percent of such households saw no wage increases this summer compared with the previous year.

When asked about the specific impact of price hikes, many said they are avoiding using air conditioning to save on electricity bills and have become unable to save money, the organization said.

The government has cited soaring childcare expenses as one of major factors behind the downtrend in the number of births in Japan, which plummeted to a historic low in 2022.

The government has unveiled measures such as removing the income limit for parents to receive child allowances and increasing the benefits for families with multiple children.

Hamagin Research Institute's Endo agreed the moves would be helpful, although it may take some time to implement them.

"It might be beneficial to provide essentials directly to families like diapers and baby formula, which they need to purchase frequently," Endo said.

"Since families might prefer different brands of diapers or milk, offering them coupons to buy such products could be more helpful," he added.

© KYODO

©2023 GPlusMedia Inc.

27 Comments
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Of course they have. There is no alternative, so they squeeze and squeeze and squeeze.

"Why is noone having children?" - Anon

6 ( +11 / -5 )

The online survey conducted from late May to early June on 1,538 people by Kidsdoor also found that 85 percent of such households saw no wage increases this summer compared with the previous year.

Who to believe?

Last month, Reuters reported, “The final survey of 5,272 unions affiliated with Rengo showed an average pay hike of 3.58%, or 10,560 yen ($73.04) per month, the biggest increase since 3.9% seen in 1993.”

Of course, inflation-adjusted real wages in Japan have fallen for 15 straight months.

-5 ( +4 / -9 )

Not forgetting that the Japanese government collects taxes on everything that is imported, produced and sold in Japan.

Clothes, food, books and other essentials are taxed at 8% at the cash register - no wonder the average Japanese is not considering having kids

-2 ( +5 / -7 )

Asiaman7, unfortunately only a small number of people are lucky enough to have received those pay increases. They work at places like Toyota and Mitsubishi. But for the majority of people, they got next to nothing but with this insane inflation rise, they are not only making less, but they are getting gouged when they buy.

4 ( +10 / -6 )

No wonder Taros and Yukis are using condoms. They can't afford the consequences.

-5 ( +7 / -12 )

Diapers, formula and other baby items have seen greater price surges than other consumer goods since the beginning of this year, causing a heavy burden on child-rearing households as Japan battles a declining birthrate, a recent think tank analysis showed.

The prices of baby-related goods were up 9.3 percent in June from a year earlier,

Japan strategy to fight declining population, increase price of baby goods! Make sense right.

-3 ( +8 / -11 )

No wonder Taros and Yukis are using condoms. They can't afford the consequences.

Taro and Yukis just having fun in love hotel using contraception and never married. Those weekend activity for fun only and will not contribute to population increase.

-8 ( +5 / -13 )

@MarkX

unfortunately only a small number of people are lucky enough to have received those pay increases. 

Actually, it’s worse than that. If a pay hike of 10,560 yen is 3.58% of a worker’s monthly wages, they make less than 300,000 ($2,060) a month, not factoring in semiannual bonuses.

1 ( +5 / -4 )

Baby goods and necessities should never be taxed! J gov shot themselves in the foot, considering they keep asking couples to have babies.

12 ( +12 / -0 )

Come on, guys! Wages at major companies are going up so much that people might make ¥3000 more a month than before! That should cover the cost of one or two diapers, right?

-1 ( +10 / -11 )

This to me Is a real cash grab by companies! For years they were profitable charging lower prices, but now with all this news about rising cost for raw materials and yen weakening they are going to try and get as much as they can out of the poor consumer who in this case are parents!

6 ( +8 / -2 )

Disposable diapers are the biggest expense. Here's what we did: we knew our babies' BM timing, in which case we'd spring for disposable; otherwise, we'd use cloth and just rinse them out in the sink. Cut diaper costs by 80%.

5 ( +6 / -1 )

Nothing against wasting money on higher conventional defense budgets or development of space defense activities and anti hypersonic missiles measures and all such, but I guess a few yen also spent on supporting buyers of such products by tax exemption, setting price limits or whatever, might be not the worst idea when having a very big mouth talking about reclimbing birth rates and young families' support.

5 ( +5 / -0 )

The government has unveiled measures such as removing the income limit for parents to receive child allowances and increasing the benefits for families with multiple children.

What is honestly the point when parents can't even afford to have their first child??

This half-baked scheme for helping with the aging population would be hilarious if it wasn't so painful for those of us living it.

5 ( +5 / -0 )

Most of these items are made in China including the formula, so buy it DIRECT via Ali Express or others Chines E Commerce it's a lot cheaper to import it.

-4 ( +1 / -5 )

Disposable diapers are the biggest expense. Here's what we did: we knew our babies' BM timing, in which case we'd spring for disposable; otherwise, we'd use cloth and just rinse them out in the sink. Cut diaper costs by 80%.

A heartwarming story. The nursery school we send our kids to require we supply enough disposable diapers to last as long as needs be. The vast majority of parents do not have the time or energy required to time the bowel movements of their kids.

4 ( +5 / -1 )

The government has unveiled measures such as removing the income limit for parents to receive child allowances and increasing the benefits for families with multiple children.

So the article talks about how the poorest of families are struggling with the baby good price increases and 85 % of such households saw no wage increases. ( Think part timers, haken employees, single parents etc ) and the government cretins response is ? Removing upper income limits on child allowances , which only benefits those who are financially well off already. You can't make this bs up.

2 ( +3 / -1 )

Disposable diapers are the biggest expense. Here's what we did: we knew our babies' BM timing, in which case we'd spring for disposable; otherwise, we'd use cloth and just rinse them out in the sink. Cut diaper costs by 80%.

Chabbawanga A heartwarming story. The nursery school we send our kids to require we supply enough disposable diapers to last as long as needs be. The vast majority of parents do not have the time or energy required to time the bowel movements of their kids.

You would not have time or energy to take care of your own kids, if you did not have enough money to buy all needed diapers ?

I did for my first when we had a tight budget. I am no superman.

Otherwise, I am not the one who will say that Japan's birth and childcare policies are sensible, adapted to need and implemented in time. Lol

-1 ( +2 / -3 )

Just increase tax on parents. If you have a child, pay more tax.

-2 ( +2 / -4 )

I thought Japan was trying to get its people to have more babies to boost their severely declining population. Increasing the prices of essential baby goods seems rather counter-productive.

1 ( +1 / -0 )

Has anyone looked at the cost of a pack of diapers in the US? Before anyone complains about the cost of diapers here in Japan go on the US Amazon and cost them out and one will be surprised at how cheap diapers are here. I heard in Indonesia diapers are far more expensive than Japan. For baby food, go to the vegetable markets, buy potatoes, daikon and carrots boil mash them up and or put them in a blender add milk and butter cheaper and healthier than the crap in jars.

Food prices are still cheaper here especially fruits and vegetables and I count my blessings for safe and functional transportation, and I don't need a car, that comes along with insurance, gas and upkeep that is another huge savings. As for rents, I looked at prices across Canadian cities they are no cheaper and or more expensive than Tokyo and again when you take out the car and the cost of that you are further ahead in Japan.

2 ( +2 / -0 )

Of course prices are going insanely up they are getting away with because of Ukraine and it going to get only worse

-1 ( +0 / -1 )

The government has unveiled measures such as removing the income limit for parents to receive child allowances and increasing the benefits for families with multiple children.

Measures used because they have shown to be effective... nowhere?

The government consider the shrinking population a problem but is unwilling to promote the deep (and unpopular) social changes necessary to alleviate it, instead it just pretend that throwing some money at it will do the thing.

0 ( +0 / -0 )

Justasking:

I do research like that as well before writing comments.

Well done!

0 ( +1 / -1 )

Printing coupons costs money, just give out cash!

1 ( +1 / -0 )

Japan- Game over .

0 ( +1 / -1 )

Japanese Government: "Japanese people, have more babies."

Japanese people: "We need higher pay and less working hours at our jobs."

Japanese company CEOs: "no."

Japanese Government: "Also, we will provide less child care services and nursery schools."

**Japanese consumer goods companies: **"Baby goods in Japan facing steeper price hikes"

Japanese people: "and you still want us to have MORE babies? How, again?"

Japanese Government: "Japanese people, have more babies............."

0 ( +0 / -0 )

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