Price of food items in Japan set to rise during the fall

Households in Japan could be faced with a further surge in price hikes on food this autumn with the volume of price increases in October across food and beverage items expected to be 2.5 times that of August, according to a recent survey. 

The results of the survey, published August 1, targeting 105 major food and beverage manufacturers in Japan revealed that 6,305 related products are scheduled for price increases in October, representing the largest single month of price hikes so far in 2022. 

The survey of price revision plans carried out by credit research firm Teikoku Databank showed a continuing rush on the part of manufacturers to increase prices. August marked the first month in 2022 to see the number of items subject to a price increase top 2,000. With increases planned for a further 8,000 plus items later in the year, the cumulative total is expected to reach over 18,000 items in 2022.  

Until recently the main reasons for price hikes on food products had been soaring global prices of wheat and oils due to Russia’s invasion of Ukraine, as well as higher logistics and packaging material costs due to increasing crude oil prices, according to the survey report.

More recently, however, the depreciation of the Japanese yen, which at times saw the currency reach an over 20-year low dropping below 140 yen to the U.S. dollar, has been cited as the primary reason for increases in many recent cases as import costs are factored into price plans. 

While earlier in the year manufacturers had been trying to keep prices stable in an effort to avoid passing on the burden to the customer, they are now showing less hesitancy to increase prices, according to Teikoku Databank.  

Taking into account an increasing trend in "re-pricing,” in which manufacturers after having already implemented one set of price hikes plan to introduce further increases, the survey creators said they can even see a situation in which the volume of items subject to a price increase tops 20,000 by the end of August. 

"... we take very seriously the fact that rising prices are significantly impacting people's daily lives, and we are undertaking assistance well-tailored to the circumstances of each local area, and taking measures focused on energy and food, which account for the largest portion of price increases." Japanese Prime Minister Fumio Kishida speaking at a press conference on July 14.

Of the price increases already carried out or planned for 2022, processed foods - including ham, sausages, and fish - account for the largest volume with nearly 8,000 items subject to planned increases in 2022.

Processed foods are followed by seasonings and condiments - including dressings and mayonnaise - 4,350 items, beverages - including beer, shochu, and soft drinks - 3,732 items, and snacks - including chocolate and ice cream - 1,192 items. 

While alcoholic beverages saw almost no price hikes in the first half of 2022, the price of beer in particular will see a planned increase in October, according to the survey. 

An autumn of price hikes in Japan

From October a 350ml can of Japanese brewer Asahi’s Super Dry, currently sold at convenience stores for around 219 yen, could see an increase to the 230 - 240 yen range. Other popular Japanese beers like Kirin’s Ichiban Shibori and Suntory’s Premium Malts may also see hikes, according to Mainichi Shimbun.  

Family restaurant chain Denny's is set to raise the prices of around 30 percent of its menu items, according to broadcaster NHK. Items, including pasta and steak dishes, will increase by 10 to 80 yen beginning in September.  

The broadcaster also reports that Skylark Restaurants Co., Ltd., operator of restaurant chains that include Gusto, plans to increase prices of some menu items at its restaurants from October and beyond.  

Conveyor-belt sushi chain Sushiro will raise the minimum price (including tax) per plate of sushi from the current 110 yen to 120 yen from October 1.

Before the end of summer, convenience store snack favorite Family Mart’s Famichiki saw a 10 percent price increase from 180 yen to 198 yen (including tax) in August, according to The Nikkei. A small hot coffee from Lawson will also increase in August from 100 yen to 110 yen.  

The financial newspaper also details increases for home-use frozen food items from the five to 28 percent range, while pasta, pasta sauces, and dried noodles from some manufacturers will see price increases in the two to eight percent range, all in August.

A separate survey conducted by Teikoku Databank, which received responses from 1,401 companies in Japan, revealed that around one in three companies have raised or plan to raise prices in August 2022 and beyond. Factoring in those companies surveyed that had already raised prices from April, the figure increases to around 70 percent.

The large percentage of chemical manufacturers, food manufacturers, and wholesalers, among other companies planning to raise prices raises concerns about the impact on smaller businesses and households in the future, according to the survey creators. 

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