TOKYO –
Sugar prices are on a firmer upward trend as concerns grow over the impact of Middle East tensions and the weaker yen, raising the prospect of further cost pressure on confectionery and other food products.
Major sugar producer Wellneo Sugar will raise shipment prices for some products by 3% to 5% from August 20.
DM Mitsui Sugar, the industry’s largest company, has also decided to raise prices by at least 3% from August shipments, showing that price increases are spreading as the effects of instability in the Middle East continue.
The rise is already being felt in confectionery prices. In the consumer price index for May, cake prices climbed 5.8%, while cream puffs rose 11%, marking notable increases among sweets.
People in the Western-style confectionery industry have voiced concern about rising costs caused by the weaker yen, saying that even if the Middle East situation stabilizes, concern is growing over the impact of currency weakness.
Source: FNN
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