TOKYO –
Food price increases in Japan are accelerating, with the number of products subject to higher prices this year potentially reaching 20,000 items as rising costs linked to tensions in the Middle East spread through supply chains and place additional pressure on household budgets.
According to a survey by Teikoku Databank, at least 11,157 food and related products had been scheduled for price increases as of June 1st this year.
A major factor behind the increases has been the rising cost of packaging materials. Higher prices for naphtha, a petroleum-derived raw material used in the production of plastics and other products, have prompted manufacturers to pass on costs to consumers. Price hikes attributed to more expensive packaging and materials, including food trays and paper cartons, accounted for more than 70% of all announced increases.
The pace of price increases is expected to intensify after summer. In July alone, more than 2,000 products are projected to see higher prices, marking the first time in three months that the monthly total has exceeded that level and signaling another major wave of increases.
Teikoku Databank noted that instability surrounding the Strait of Hormuz is beginning to affect domestic industries, leading to tighter supplies of petroleum-based resin materials and increasing cost pressures throughout the economy.
The research firm warned that if current trends continue, the number of products affected by price increases this year could reach the 20,000-item range, raising concerns that consumers will face a prolonged period of higher living costs.
The latest outlook suggests that geopolitical tensions in the Middle East are no longer affecting only energy markets but are increasingly being reflected in the prices of everyday goods, from food packaging to household necessities, adding to the financial burden on Japanese households already coping with persistent inflation.
Source: TBS
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: newsonjapan.com
