Price hikes for 6,100 food & beverage items in Japan

Apr 25, 2022 | News On Japan

Prices rising by average of 11%

Apr 25, 2022 (NHK) - Household budgets in Japan are being squeezed as a range of factors including higher raw-material costs make other goods more expensive.

A private survey shows price hikes affecting about 6,100 food and beverage items in the first half of this year.

The survey conducted this month by research firm, Teikoku Databank, shows that 54 companies raised or plan to raise prices from January to July. That represents more than half of the 105 businesses approached. Prices are going up by an average of 11 percent.

The processed foods category is most widely affected. About 2,900 items including cup noodles, ham and frozen products are being marked up by 12 percent on average.

An increase in packaging costs caused by the spike in crude oil prices is compounding the impact of more expensive wheat and raw materials.

A poor harvest for rapeseed used in cooking oil is driving up prices for 1,300 dressings and other seasonings by an average of 9 percent. The crop is also in demand for biofuel.

The weaker yen and surging logistics costs are translating into average price increases of 15 percent for about 740 wines and other beverages.

The research firm expects the trend to continue. It says the hikes are caused by a combination of factors which are likely to persist even if the war in Ukraine ends.

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