Japan’s Students Grapple with Soaring Living Costs Amid Inflation Crisis

Japan’s University Students Face a Cost-of-Living Squeeze

University students across Japan are facing mounting financial pressure as the cost of living surges to levels unseen in decades. Recent surveys reveal that more than 90 percent of scholarship recipients are struggling to make ends meet, with many forced to skip meals and cut back on essentials. The situation is particularly dire for students from single-parent households, who report difficulties paying rent and affording basic nutrition. These findings highlight a growing crisis for Japan’s youth, raising urgent questions about the adequacy of government support and the broader economic forces driving this hardship.

Why Are Living Costs Rising So Fast in Japan?

Japan, long known for its stable prices and low inflation, is now experiencing a dramatic shift. The core consumer price index rose by 3.7 percent in May, the highest in over two years, and staple foods like rice have seen prices double within a year. According to a Reuters survey, food manufacturers plan to raise prices on more than 2,100 items in July alone, with average increases of 15 percent. The price of rice, a dietary staple, soared by 101 percent year-on-year in May, prompting the government to release emergency stockpiles—an action typically reserved for natural disasters.

Several factors are fueling this inflationary surge:

• Global supply chain disruptions—including those caused by the war in Ukraine—have pushed up the cost of imported goods and energy.
• A weak yen has made imports more expensive, further driving up prices for food and fuel.
• Rising labor and transportation costs are being passed on to consumers.

Despite these pressures, wages have remained largely stagnant, eroding the purchasing power of households and students alike. As one student told the Osaka-based nonprofit D×P, “I can’t afford three meals a day anymore. Sometimes I just have rice and pickles.”

Inflation and the Student Experience

For students, the impact of inflation is especially acute. A survey by D×P of 350 university students on scholarships found that:

• Over 90 percent are finding it increasingly difficult to manage their finances.
• More than three-quarters say rising food costs make it hard to get by.
• 56 percent report not getting proper meals.
• Students from single-parent households are the hardest hit, often skipping meals and struggling with rent.

Imai Noriaki, head of D×P, warned, “Many students face a crisis. Grant-type scholarships remain the same for students even though the cost of living and tuition fees keep rising.” He called on the government to provide emergency support and increase scholarship amounts to keep pace with inflation.

How Much Does It Cost to Be a Student in Japan?

The cost of living for students in Japan varies by city, accommodation type, and lifestyle. According to Gogo Nihon and Instarem, average monthly expenses for students are as follows:

• Tokyo: 93,000 yen (about $600) per month, including rent
• Other major cities (Osaka, Nagoya, Sapporo, Fukuoka): Slightly lower, but still substantial
• Share house rent: 65,000 yen in Tokyo
• Private apartment rent: 80,000 yen in Tokyo
• Utilities: 16,000 yen
• Groceries: 45,200 yen
• Public transport: 5,600 yen

Food prices have become a particular pain point. A bowl of ramen now costs 800–1,500 yen, while a simple convenience store meal can run 400–600 yen. With minimum wages in Tokyo at 1,072 yen per hour, even students working part-time (up to 28 hours per week) struggle to cover basic expenses without sacrificing their studies.

Tuition fees add another layer of financial strain. National universities charge around 535,800 to 642,960 yen per year, while private universities average 1,477,339 yen. These costs are often paid upfront, and scholarships have not kept pace with rising expenses.

Comparing Student Budgets to Scholarships

Most grant-type scholarships in Japan have remained static for years, despite the sharp rise in living costs. This means the real value of financial aid is shrinking, leaving students to bridge the gap through part-time work, family support, or by cutting back on essentials. For those from low-income or single-parent households, the options are even more limited.

Government and Corporate Responses: Is Help on the Way?

The Japanese government has taken some steps to address the broader cost-of-living crisis. In May, it approved the use of 388.1 billion yen from reserve funds to subsidize energy bills for households and businesses, aiming to reduce electricity and gas costs during the summer months. This is part of a larger relief package worth up to 2.8 trillion yen, which includes contributions from local governments and private companies. However, critics argue these measures are temporary and do not address the underlying issues facing students and other vulnerable groups.

Prime Minister Shigeru Ishiba has resisted calls to cut the consumption tax, instead offering one-off cash handouts of 20,000 yen per citizen (double for children) ahead of elections. Economists warn that such short-term fixes may add to inflation and public debt without providing lasting relief. As the East Asia Forum notes, Japan’s public debt now exceeds 250 percent of GDP, and comprehensive tax reform is needed to ensure fiscal sustainability.

Corporate Initiatives: A New Approach to Student Support?

Some Japanese companies are stepping in to fill the gap left by government policy. Facing a shrinking and aging workforce, employers are offering perks such as student loan reimbursement and subsidized housing to attract young talent. According to Fortune, the number of businesses providing student loan repayment benefits has doubled in the past year, and employer-sponsored housing is becoming more common. Companies like Nippon Life and Itochu are building dormitories where employees pay below-market rent and receive meals and amenities.

These initiatives are partly a response to Japan’s demographic challenges. The population of workers aged 20 to 24 has dropped by 36 percent over the past 30 years, and by 2040 the country could face an 11 million worker shortage. By easing the financial burden on young people, companies hope to attract and retain the next generation of employees.

Broader Impacts: Student Mobility and Political Shifts

The cost-of-living crisis is not just affecting students’ day-to-day lives—it is also shaping their decisions about the future. Rising expenses and a weak yen are prompting more Japanese students to consider studying in other Asian countries, where tuition and living costs are lower. According to The Japan Times, destinations like Taiwan, South Korea, Malaysia, and the Philippines are becoming increasingly attractive alternatives to traditional Western study-abroad options.

At the same time, the government is pursuing a dual strategy: attracting more international students to Japan while encouraging Japanese students to gain experience abroad. The J-MIRAI strategy aims to bring in 400,000 international students by 2033 and send 500,000 Japanese students overseas. However, financial barriers, misaligned academic calendars, and job market concerns remain significant obstacles.

Political Ramifications

The cost-of-living squeeze is also fueling political discontent. Populist parties like Sanseito have gained ground by tapping into public frustration over rising prices and stagnant wages. Their message resonates with young and low-income voters who feel left behind by mainstream parties. As The Guardian reports, Sanseito’s success in recent elections reflects a broader sense of pessimism about the future and a desire for change.

Expert Perspectives: What Comes Next?

Economists warn that Japan’s inflation may be more persistent than policymakers expect. Tsutomu Watanabe, an emeritus professor at the University of Tokyo, told The Japan Times, “It’s beyond my expectation and very strong this year.” He predicts that the Bank of Japan will need to raise interest rates again, but Governor Kazuo Ueda has signaled caution, wanting to assess the impact of U.S. tariffs and other external factors before making further moves.

Meanwhile, students and advocacy groups are calling for more targeted support. They argue that scholarships and financial aid must be adjusted to reflect the new reality of higher living costs, and that long-term solutions—such as comprehensive tax reform and investment in affordable housing—are needed to ensure that higher education remains accessible to all.

In Summary

• Japan’s university students are struggling with rising living costs, especially food and rent, as inflation hits multi-decade highs.
• Over 90 percent of scholarship recipients report financial hardship, with many skipping meals and cutting back on essentials.
• Inflation is driven by global supply chain disruptions, a weak yen, and rising labor and transportation costs, while wages remain stagnant.
• Government responses, such as energy subsidies and cash handouts, offer only temporary relief and do not address the root causes of student hardship.
• Some companies are offering student loan repayment and subsidized housing to attract young workers amid a labor shortage.
• Rising costs are prompting more Japanese students to consider studying abroad in Asia, while populist parties gain support from disaffected youth.
• Experts warn that inflation may persist, and call for comprehensive reforms to ensure long-term affordability and access to higher education.