Prices On Food Items Expected To Rise By 15% By The End Of 2022 In Japan
According to a report by a credit research organization, food prices in Japan will continue to climb for the second half of 2022, with more than 10,000 items expected to see price increases starting in August as material import costs increase owing to a lower yen.
According to a poll by Teikoku Databank, there will be price increases for 2,431 goods in August and 8,043 additional items later in the year.
These products would bring the total number of things that have seen price increases or are anticipated to see price increases this year to 18,532 items, with the average increase margin standing at 14 percent, according to the poll.
According to the company, the total number could reach 20,000 by the year’s end if inflation continues at its current rate.
A Teikoku Databank official responsible for the survey stated that companies are less likely to think twice about raising prices. As the rival companies in the market have started charging more, the lesser prices products have also decided to adopt the new expensive price.
The decline in the yen is the most crucial factor in this inflation that drastically raised the cost of imports. The company stated that prices for many items have been rising twice as fast as they used to due to increasing costs for raw materials like wheat, edible oils, and logistics.
According to the predictions, August will only be the beginning of the inflation and the drastic price increase will be in October. There are 6,305 products. August has 2,431 and September 1,661.
Eighteen thousand five hundred thirty-two products have been affected by price increases this year. Seven thousand seven hundred ninety-four of these are processed foods like sausages and frozen food, 4,350 condiments, including mayonnaise and dressings, and 3,732 liquor and beverages.
The company had compiled data by the end of July on price increases from 105 primary food- and beverage companies that were listed on stock exchanges.
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