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NHK
13 hours ago
- Business
- NHK
Prices to rise for over 2,000 Japanese food items in July
Shoppers in Japan are facing yet another expensive month at the supermarket. A survey has found that food and beverage makers plan to hike prices on over 2,000 items in July. Private research firm Teikoku Databank says it polled 195 domestic companies. It says prices will rise on 2,105 products in July. That's about five times the figure for the same month last year. Seasonings will be the most heavily affected group, with 1,445 items in line for price hikes. This category includes spices and broth products. 206 alcohol and beverage items will also have their prices raised. The cost of confections, such as gum and chocolate, and processed foods including pre-cooked rice and pasta sauces will rise as well. The research firm cites surging material prices and higher production costs as contributing factors. Teikoku Databank expects hikes for more than 18,500 items by November. That would be nearly 50 percent more than the total for 2024. The firm says the trend is likely to continue for some time, owing to supply instability amid abnormal weather conditions.
Reuters
13 hours ago
- Business
- Reuters
Japan's food inflation to intensify in July, survey shows
TOKYO, June 30 (Reuters) - 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. 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%, 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 July 1, Ajinomoto AGF plans to raise prices for its coffee items by about 25-55%, and Meiji will increase prices for cheese and milk by up to 11%. 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. After raising its short-term policy rate to 0.5% in January, the BOJ has kept borrowing costs steady despite core consumer inflation hitting a more than two-year high of 3.7% in May, exceeding its 2% target for well over three years. BOJ Governor Kazuo Ueda has stressed the need to move cautiously in raising rates until inflation is driven more by solid consumption and higher wages, rather than rising raw material costs. But the central bank's argument that rising food and fuel costs are likely temporary, and not a justification for raising rates, is being tested by persistent rises in the cost of living that may affect public perceptions of future price moves, analysts say. A government survey on Monday showed 93.6% of consumers polled in May expect prices to rise a year from now, up from 93.2% in April, with 55.5% projecting inflation of 5% or higher. The BOJ's quarterly "tankan" survey on companies, due on Tuesday, will highlight the challenge it faces in balancing mounting inflationary pressure, and risks to Japan's fragile economy from steep U.S. tariffs. Analysts polled by Reuters expect an index measuring big manufacturers' business sentiment to worsen to +10 in the June survey from +12 in March. The focus would be on whether companies will retain their solid capital expenditure plans despite uncertainty over U.S. trade policy. Big firms surveyed in the tankan are expected to increase capital expenditure by 10% in fiscal 2025 from year before levels, the Reuters poll showed.
Malay Mail
15 hours ago
- Business
- Malay Mail
Over 2,100 food items in Japan to get pricier in July amid cost pressures
TOKYO, June 30 — Some 2,105 food items in Japan will see price hikes in July, driven by surging raw material costs along with higher labour, logistics, and utility expenses, according to a report by Teikoku Databank, reported Xinhua. As companies pass the rising costs onto consumers, the total number of food products set for price increases in 2025 has reached 18,697 and may surpass 20,000 as early as July, according to the report. A survey of 195 major food manufacturers revealed that seasonings such as curry roux and soup stock account for the most hikes at 1,445 items. Confectionery items, including chocolates and gum, will also rise in price, with some seeing reduced content. Processed foods like rice products and pasta sauces are also affected. The most common reason cited for the hikes was higher raw material costs, followed by labour costs, the highest since data collection began in 2023. Teikoku Databank warned that further tensions in the Middle East could push up crude oil, edible oil, and wheat prices, possibly leading to even broader price increases. — Bernama-Xinhua
CNA
21 hours ago
- Business
- CNA
Japan's food inflation to intensify in July, survey shows
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. After raising its short-term policy rate to 0.5 per cent in January, the BOJ has kept borrowing costs steady despite core consumer inflation hitting a more than two-year high of 3.7 per cent in May, exceeding its 2 per cent target for well over three years. BOJ Governor Kazuo Ueda has stressed the need to move cautiously in raising rates until inflation is driven more by solid consumption and higher wages, rather than rising raw material costs. But the central bank's argument that rising food and fuel costs are likely temporary, and not a justification for raising rates, is being tested by persistent rises in the cost of living that may affect public perceptions of future price moves, analysts say. The BOJ's quarterly "tankan" survey on companies, due on Tuesday, will highlight the challenge it faces in balancing mounting inflationary pressure, and risks to Japan's fragile economy from steep US tariffs. Analysts polled by Reuters expect an index measuring big manufacturers' business sentiment to worsen to +10 in the June survey from +12 in March. The focus would be on whether companies will retain their solid capital expenditure plans despite uncertainty over US trade policy. Big firms surveyed in the tankan are expected to increase capital expenditure by 10 per cent in fiscal 2025 from year before levels, the Reuters poll showed.
Business Times
21 hours ago
- Business
- Business Times
Japan's food inflation to intensify in July: survey
[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. 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. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Among companies that announced plans to hike prices from July 1, Ajinomoto AGF plans to raise prices for its coffee items by about 25-55 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. After raising its short-term policy rate to 0.5 per cent in January, the BOJ has kept borrowing costs steady despite core consumer inflation hitting a more than two-year high of 3.7 per cent in May, exceeding its 2 per cent target for well over three years. BOJ Governor Kazuo Ueda has stressed the need to move cautiously in raising rates until inflation is driven more by solid consumption and higher wages, rather than rising raw material costs. But the central bank's argument that rising food and fuel costs are likely temporary, and not a justification for raising rates, is being tested by persistent rises in the cost of living that may affect public perceptions of future price moves, analysts say. The BOJ's quarterly 'tankan' survey on companies, due on Tuesday, will highlight the challenge it faces in balancing mounting inflationary pressure, and risks to Japan's fragile economy from steep US tariffs. Analysts polled by Reuters expect an index measuring big manufacturers' business sentiment to worsen to +10 in the June survey from +12 in March. The focus would be on whether companies will retain their solid capital expenditure plans despite uncertainty over US trade policy. Big firms surveyed in the tankan are expected to increase capital expenditure by 10 per cent in fiscal 2025 from year before levels, the Reuters poll showed. REUTERS
