TOKYO: Japanese households will get no respite from rising living costs with a five-fold increase expected in the number of food items set to experience price rises in July, a private think tank survey showed on Monday (Jun 30).
The finding highlights mounting inflationary pressure in Japan’s once deflation-prone economy, which some policymakers view as an early sign of widespread, sustained price rises that may require raising interest rates further.
A survey conducted on 195 major food makers showed they expect to hike prices for 2,105 items in July – up fivefold from year-before levels – by an average 15 per cent, Teikoku Databank said.
Aside from rising raw material prices and utility bills, companies cited increasing transportation and labour costs as reasons for the price hikes, the report released by Teikoku Databank showed.
“The momentum for food and beverage price hikes is stronger in 2025 than that of the previous year,” the report said.
Prices were set to rise for a range of items including those made of rice, as well as chocolate, chewing gum, potato chips and pasta sauce.
Among companies that announced plans to hike prices from Jul 1, Ajinomoto AGF plans to raise prices for its coffee items by about 25 to 55 per cent, and Meiji will increase prices for cheese and milk by up to 11 per cent.
A renewed rise in crude oil prices due to the escalating conflict in the Middle East could spark a revival of the price hike rush Japan experienced in 2022, when prices increased for a total of 25,768 food and beverage items, Teikoku Databank said.
https://www.channelnewsasia.com/east-asia/japan-food-inflation-intensify-july-prices-rise-pressure-5210726
