Japan's Record ¥122T Budget Arrives as Egg Prices Hit All-Time High

Your grocery bill is climbing. As of December 26, 2025, the average price of eggs in Tokyo has hit a record high for the month, a clear sign of the inflationary pressures facing Japanese consumers. On the same day, the government finalized a record-breaking national budget, further stoking concerns about the rising cost of living.

From the Kitchen to Electronics, Prices Are on the Rise

The spike in egg prices is more than a simple grocery concern. It coincides with warnings of potential price hikes for essential electronics like PCs and smartphones, driven by a persistent shortage of memory chips. This suggests that supply chain disruptions and rising commodity costs are now directly hitting consumers' wallets. The timing couldn't be worse, as it puts a damper on the year-end holiday shopping season.

Record ¥122 Trillion Budget: Fuel for the Inflation Fire?

Amid this price instability, the Japanese government approved its next fiscal year's budget on December 26th, totaling a massive ¥122.3092 trillion. It's the largest budget in the nation's history. Analysts note that such a massive fiscal injection could intensify inflationary pressures. Meanwhile, the labor market isn't keeping pace. The Ministry of Health, Labour and Welfare reported that November's effective job-to-applicant ratio held steady at 1.18, indicating that wages aren't likely to rise fast enough to offset the increasing cost of living.