Japan also raises everything except wages... "Food prices to surge 18% next year"

Food Companies Launch Massive Price Hikes Due to High Inflation
Nestle Raises Prices by 25%, Suntory Up to 28% Increase

A view of the shelves at a Seven-Eleven convenience store in Japan.

[Asia Economy Reporter Jeon Jinyoung] As Japanese food companies are expected to raise prices by an average of 18% next year, Japan is also facing an inflation alert. Due to the global inflation trend and the impact of rising energy and raw material prices following the Ukraine war, grocery prices are expected to rise sharply. The burden of living expenses for Japanese households is also estimated to increase by more than 1.2 million KRW annually.

According to the Asahi Shimbun on the 28th, Japanese food companies are expected to simultaneously raise prices on more than 7,000 food items next year. The average price increase by companies is expected to be 18%, which is 4 percentage points higher than this year's 14%, the Asahi Shimbun reported.

According to a recent survey by Teikoku Databank, a Japanese corporate information research agency, targeting 105 food companies, the surveyed companies plan to raise prices on a total of 7,152 items from January to April next year. This figure is more than 1.5 times that of the same period this year.

Market analysis firm Mizuho Research & Technologies also released a recent report analyzing that "due to food price increases, the household burden next year will increase by 136,000 yen (1.28 million KRW) annually compared to two years ago."

Representative beverage company Nestl? Japan plans to raise prices on beverages such as coffee by up to 25% in March next year, and Suntory plans to increase prices on imported whiskey and liqueurs by up to 28%.

Maruha Nichiro and TableMark, known for frozen foods, plan to raise prices again in February next year following increases this year. Both companies have already raised prices twice this year. Kikkoman, which made headlines this year for raising soy sauce prices for the first time in 14 years, is considering another price increase in April next year.

Some companies have chosen to reduce package sizes to maintain prices. Yamazaki Baking, for example, will sell its "Thin Crust Red Bean Bread," which has been sold in packs of five for 20 years, in packs of four starting January next year. Fujiya plans to reduce the number of Milky Candies, famous in Korea as 'Peko-chan Candy,' from seven to six per box.

Shinichiro Kobayashi, senior researcher at Mitsubishi UFJ Research & Consulting, told the Asahi Shimbun, "Next year will be a year when people continue to feel rising prices, and saving-oriented consumption will spread. Without expectations of wage increases, consumption will not follow."

This content was produced with the assistance of AI translation services.