Rising Prices in Japan: Tokyo Implements Four-Month Water Bill Waiver to Alleviate Costs

Mr. Hong, who works in Tokyo, has keenly felt the rise in local prices, particularly in daily food items. A trip to the supermarket reveals astonishing increases in the prices of beverages and coffee, accompanying a rise in living expenses. Mr. Hong noted that food prices at supermarkets have gone up only two months ago and have recently surged again, with particularly noticeable increases in food categories. He believes that salary adjustments are lagging behind the rapid inflation, reflecting the sentiments of many local workers: "Everything is rising, but salaries are not."
As for Taiwan's price performance, the Directorate-General of Budget, Accounting and Statistics reported that in May, the consumer price index (CPI) year-on-year growth rate was only 1.55%, already below the 2% alert line, but food and dining costs have continued to skyrocket. Food prices increased by 3.09%, meat by 4.8%, and dining out costs by 3.5%, leaving those who eat out feeling the pinch.
Professor Wu Da-ren of the Central University of Economics argues that current global trade relationships have a positive impact on Taiwan's prices. However, certain factors continue to exert pressure on inflation, primarily the ongoing rise in rent and annual adjustments to minimum wage. As a result of these counteracting factors, the overall inflation situation in Taiwan is not so severe. Professor Wu stated that if tariff policies remain unchanged in the following months, the upward trend in prices is expected to ease.
In contrast, Japan's situation is quite different. Professor Wu pointed out that Japan's CPI year-on-year growth rate during the first half of this year has been between 3.5% and 4%, creating a considerable burden on citizens’ daily lives and household expenditures. Therefore, the Japanese government has implemented some relevant policies to alleviate the pressure on citizens due to inflation. However, mindful of citizens' pressures, with the summer approaching and extreme high temperatures unpredictable, there are concerns that elderly individuals may forego using air conditioning to save on electricity, potentially leading to heat-related illnesses. Tokyo has decided to implement a waiver on basic water fees for approximately 8 million households for four months this summer, with a budget of 36.8 billion yen, hoping this will allow residents to have extra funds to turn on air conditioning.
Mr. Hong believes that this policy may save households between 4,000 to 5,000 yen over four months, potentially allowing some people to run air conditioning during hot times. However, he feels that if the initiative is solely for the elderly who are not accustomed to using air conditioning, the outreach may not have much impact.
As for whether local governments in Taiwan will implement similar policies, Taipei City Councilor Lin Chen-yu stated that the basic water fee in Taipei depends on the pipe diameter, and it is necessary to evaluate whether to provide assistance for households and disadvantaged groups. She believes it is possible to consider this area for adjustments, primarily targeting households and vulnerable groups. The policies of Tokyo might serve as a reference, but the budget sufficiency should also be taken into account. Councilor Lin pointed out that there is a possibility for Taipei City, but given the current situation of central government budget cuts, many local citizen welfare and social service budgets are already affected.