Business Daily Japan's economic crossroads
Feb 5, 2026
Kathy Matsui, former Goldman Sachs Japan strategist turned venture capital partner, and Mariko Ooi, BBC reporter raised in Tokyo, discuss Japan's sudden shift from long stagnation. They cover rising rice prices and how inflation feels new to households. They talk about wages lagging behind costs, pressures on small businesses, market gains and how policy could unlock investment and startups.
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Inflation Feels New To Many Japanese
- Japan lived for decades with falling or flat prices, so sudden inflation feels alien to many consumers.
- Mariko Ooi explains external shocks since Ukraine pushed import costs up and ended long-standing deflation.
Family Bought Cheaper Rice Abroad
- Mariko Ooi says friends and family obsessively complained about rice prices and her mother bought cheaper Japanese rice abroad.
- She uses that personal story to show how staples' price rises are felt in everyday life.
Restaurants Squeezed By Soaring Input Costs
- Rising food and input costs squeeze restaurant margins and force price raises that risk losing customers.
- Several owners report running months in the red despite raising menu prices to cover doubled food costs.