Living conditions index hits lowest level in 15 years in Japan
The diffusion index on living conditions, or the percentage of respondents who said their living conditions improved from a year before minus that of those who said the opposite stood at minus 57.2, the worst level since the September 2009 survey.
The figure worsened from minus 52.0 in the previous March survey, according to the latest survey released Monday.
The share of respondents who said they have become worse off came to 61.0%, up 5.1 percentage points from the previous survey.
By contrast, the proportion of people who said they have become better off fell by 0.1 point to 3.8%.
Among respondents becoming worse off, the proportion of those who cited rising prices as a reason behind the deterioration reached 93.7%.
The survey also showed that the share of respondents who think that economic conditions worsened from a year before stood at 70.5%.
Asked how much prices would increase in a year, respondents answered 12.8%, on average, up from 12.2% in the previous survey and hitting the highest level since comparable data became available in September 2006.
The share of respondents who said prices rose in the country from a year before came to 96.1%, almost unchanged from the previous survey.
The latest survey was conducted between May 1 and June 3, covering people age 20 or over across the country.
The June survey was the first since the administration of U.S. President Donald Trump imposed additional tariffs on steel, aluminum and automobiles as well as some "reciprocal" tariffs.
"We cannot say anything for sure" about the potential impact from the tariffs, a BOJ official said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Times
3 hours ago
- Japan Times
Privacy safeguards needed to help fuel AI growth in Japan, panel chair says
The head of Japan's Personal Information Protection Commission has emphasized the need to introduce a monetary penalty system to help develop the country's artificial intelligence industry. In a recent interview, Satoru Tezuka, who assumed the role of commission chair in May, said that the country "should introduce" a system that includes fines for profits gained through the misuse of personal information, as part of a triennial revision of the personal information protection law. The law revision was postponed during this year's ordinary parliamentary session amid strong opposition from business circles toward a system involving fines. "The word 'fine' makes businesses cautious, but our planned system is intended to crack down on malicious law violators and would not affect diligent business operators," Tezuka said. "We are proposing making personal information available without consent in principal if it is used for AI development, and for this, we need to ensure proper governance among business operators," he said. Noting that the world is changing with the emergence of AI, the commission chair said, "AI is like a living thing, so we need to feed it data and let it grow." "If personal information is included in such data, the current law requires people's consent in advance in some cases," he pointed out, adding that this requirement has hindered technological development. The personal information protection law is "essential in ensuring the healthy development of data use," Tezuka said. At the same time, he stressed that Japan cannot compete with other countries in AI development under the current law. Among the Group of Seven major democracies, only Japan and Canada have not introduced a system involving monetary fines, he said. Another focal point of the law revision is child protection. "Children's judgment is not on the same level as adults," Tezuka said. "It's important to develop systems and technologies on the assumption that they are used by children." "We aim to submit (a bill to revise the law) soon, but we don't have a specific schedule in mind," Tezuka said. "The commission had previously been headed mainly by legal experts, but I was appointed this time as someone who specializes in technology, because what is needed now is a data strategy," he emphasized. "I think the government's policy on personal information protection has entered a new stage," Tezuka said. "It is my duty to ensure coherence between data use and protection, and to work out the details (of the law revision)."
Kyodo News
4 hours ago
- Kyodo News
Japan, U.S. ministers reached trade agreement in mid-June: sources
TOKYO - Japan's chief negotiator reached an agreement with U.S. Commerce Secretary Howard Lutnick in mid-June on a deal offering massive Japanese investment in the United States in exchange for a reduction in tariffs, sources close to the matter said Saturday. Over the following month, Japan focused on convincing U.S. President Donald Trump through Lutnick of the advantages of the agreement, with the proposal of expanding imports of U.S.-grown rice used as the final bargaining chip. The trade deal, announced by Trump on July 23, includes tariffs on Japanese cars set at 15 percent -- lower than the 27.5 percent that was to have been levied -- in exchange for $550 billion of Japanese investment in the United States. During the course of the negotiations, which spanned around three months from mid-April, Japan identified Lutnick as the only person who could communicate "directly and on a deep level" with Trump due to their close friendship of over 30 years, and directed its efforts on him, according to one of the sources. Ryosei Akazawa, Japan's chief tariff negotiator, built trust with Lutnick not only through in-person talks but also through dozens of phone calls, the source said. Believing that Lutnick placed a high priority on economic security amid China concerns, Japan emphasized its willingness to contribute to strengthening U.S. domestic supply chains and eventually reached an understanding with him. Trump, however, maintained a hardline stance even in late June, venting frustration that Japan does not import significant amounts of American cars and rice. "I'm not sure we're going to make a deal. I doubt it," he had said, while demanding additional concessions in exchange for lowering tariffs. The tide turned on July 22 immediately following Japan's upper house election. A sudden meeting was arranged for the following day between Trump and Akazawa, who was in Washington for an eighth round of talks. Akazawa and Lutnick began to "rehearse" in preparation for the talks, with Lutnick suggesting that a total investment of $400 billion be proposed in the expectation that Trump would ask for $500 billion. A board was prepared by U.S. officials to clearly show Trump how much Japan would investment. But Trump demanded even more, leaving Akazawa no choice but to agree to $550 billion. A senior official of the prime minister's office acknowledged that the deal does not align with World Trade Organization rules or the Japan-U.S. trade agreement that took effect in January 2020, but also conceded that Trump "is a president who genuinely believes in protecting his country through tariffs."
The Mainichi
7 hours ago
- The Mainichi
US-Japan: Reimagining an alliance for a fractured world
The following is a contribution to the Mainichi Shimbun from Michael Schiffer, who served as assistant administrator of the Bureau for Asia at the United States Agency for International Development (USAID), which was dismantled by the Donald Trump administration. In his contribution, Schiffer discusses the future of the Japan-U.S. alliance. -- In the first six months of the second Trump administration, the U.S.-Japan alliance has been rocked by renewed uncertainty. Although the July 22 tariff agreement has relieved some of the immediate pressure, the negotiations were contentious and drawn-out, with the White House's threats to impose fresh tariffs on Japanese automobiles and agriculture, coupled with demands that Tokyo increase its host-nation support for U.S. forces and step up its security commitments in the region -- demands that may have contributed to the "postponement" of a planned 2+2 meeting earlier this month -- reviving painful memories of the trade wars and alliance strains of the 1980s. Trump's public questioning of whether the United States will live up to its alliance commitments, alongside his erratic posture on Ukraine and unilateral cuts to foreign assistance programs -- including those supporting Indo-Pacific infrastructure and governance -- have further shaken confidence in the reliability of American leadership. At a time when the foundational pillars of the post-war world are cracking under the combined weight of technological upheaval, environmental crisis, demographic transformation, and a new era of great-power rivalry, these moves have undermined the sense of strategic stability that has long defined an alliance that has served as the cornerstone for peace, security and prosperity for Tokyo and Washington alike. In the face of these structural changes, alliance managers must move beyond the conceptual mainstream, and seek to imagine a new world rather than continue to act as custodians of a fading order, attempting to solve 21st-century problems with 20th-century blueprints and defending the sanctity of an alliance built for a world that no longer exists. And yet, Japan remains one of America's most capable, trusted, and forward-looking allies. With its advanced economy, technological prowess, and increasingly assertive defense policy, Japan is uniquely positioned to work with the United States on the basis of shared interests and shared values to navigate the strategic challenges of a more contested Indo-Pacific -- and the generational challenge of a more assertive and aggressive China, with its own vision for what the regional and global order should look like. Neither the U.S. or Japan are likely to be successful in this undertaking alone, and even less so if Washington and Tokyo are working at cross-purposes. Doing so will also require more than a reaffirmation of old commitments. The rapidly changing global geostrategic and geoeconomic landscapes demand a fundamental reimagining of the alliance -- across economic, technological, diplomatic, and military domains. The rise of a more assertive China -- militarizing the South and East China Seas, threatening Taiwan, weaponizing economic coercion, and seeking to shape global norms to its advantage -- has made clear that alliances anchored in Cold War-era assumptions about roles, missions and capabilities are no longer sufficient. Tokyo recognizes this: Japan has undertaken a historic defense build-up, doubled its defense budget, and committed to acquiring counterstrike capabilities, signaling a Japan that is ready to be not just a junior partner, but a co-equal shaper of regional stability. The United States must meet this moment with strategic imagination, not just a narrowly construed "America First" transnationalism. That means moving beyond instrumental debates over cost-sharing to deepen integration across defense planning, technological innovation, and economic resilience. The U.S.-Japan alliance faces a precarious security landscape, one demanding immediate and decisive action. From China's assertive military expansion and "gray zone" tactics in the East and South China Seas, particularly around the Senkaku Islands and Taiwan, to North Korea's relentless pursuit of nuclear and ballistic missile capabilities, the Indo-Pacific is increasingly volatile, all part and parcel of an international system that is rapidly evolving from X to Y. Given the scope and scale of these challenges, we cannot afford complacency. It is imperative that Washington and Tokyo accelerate our joint development of next-generation defense technologies -- AI-enabled command systems, autonomous platforms, cyber defense -- and fast-tracking the co-development and deployment of advanced technologies, strengthening integrated air and missile defense systems, and ensuring seamless interoperability of our forces across all domains. This will help the alliance to deter aggression and operate effectively in an era defined by multi-domain conflict. The time to act is now, not only to safeguard our shared security interests but to uphold regional stability and to set the rules for the evolving international order against growing authoritarian challenges. Economically, the alliance must focus on shaping the rules of the road for the 21st century. With the Trans-Pacific Partnership long abandoned, the U.S. and Japan should spearhead digital trade agreements, investment screening regimes, and supply chain partnerships that insulate both economies from coercive pressures. Initiatives like the U.S.-Japan Economic Policy Consultative Committee (EPCC) should be scaled up into a formal economic dialogue akin to the 2+2 defense framework, driving coordination on geoeconomic strategy. While headlines may be dominated by tariffs and calls for economic rebalancing, it's crucial to recognize these discussions as echoes of a bygone era. While there are valid arguments for rebalancing, obsessing over trade deficits and protectionist measures risks diverting our focus from the true challenges and opportunities of the 21st century. The global economic landscape has fundamentally shifted, and our attention must pivot from the battles of the past to the imperative of co-leading the future. This means looking beyond traditional trade in goods to foster deeper collaboration and shared investments in areas like the governance of emerging technologies, resilient supply chains, and the green economy, ensuring our alliance is not just economically balanced but future-proofed. Finally, Japan and the United States should jointly invest in regional capacity-building -- from infrastructure finance to maritime domain awareness to climate resilience. This means reconsidering cuts to foreign assistance and treating development as a strategic instrument. Japan's extensive development networks and America's innovation ecosystem can be combined to offer a robust alternative to China's Belt and Road. To meet the test of this moment, the U.S.-Japan alliance must become more than a security arrangement. It must be a platform for shared strategy, innovation, and governance in the Indo-Pacific. The future of the U.S.-Japan alliance hinges on our willingness to confront the present with clear eyes and bold action. This isn't a moment for nostalgia; it's a demand for strategic reimagining. We must move beyond outdated notions of stability and influence to rebuild an alliance fit for a fragmented and fast-moving world. This means prioritizing investment beyond military modernization to include the governance of emerging technologies. It requires us to fully integrate climate adaptation and economic competitiveness as core pillars of national security. And critically, it compels us to evolve the institutions and coalitions -- both formal and informal -- that are essential for managing geopolitical volatility and for competing effectively with the PRC. The past six months have been challenging for Tokyo and Washington. But we have an opportunity to seize the moment to forge an alliance that is not just resilient, but truly transformative for the 21st century. Profile: Michael Schiffer has served as U.S. Deputy Assistant Secretary of Defense for East Asia, senior advisor and counselor on the Democratic Staff of the Senate Foreign Relations Committee, and assistant administrator of the USAID Bureau for Asia. His areas of expertise include U.S. foreign and defense policy, and security in the Indo-Pacific region.
