Japan Faces Record Price Hikes for Food and Utilities

The prices of over 3,000 food items in Japan are set to rise next month as higher packaging costs and a weaker yen continue to put pressure on household budgets. According to Teikoku Databank Ltd., 3,153 food and beverage items will see price hikes in October, following 4,965 increases in September. The research firm described the two months as another 'wave of price hikes.'

The higher crude oil and naphtha prices caused by the Middle East conflict have driven up packaging material costs, while the weakening yen has pushed up import prices. This will prompt companies to pass on these increased costs to consumers.

Major brewers are raising prices for beer-like drinks due to liquor tax rate hikes on those categories. Torikizoku, a yakitori chain, will increase its uniform price from 390 yen to 410 yen, while Oriental Land Co., the operator of Tokyo Disney Resort, will raise maximum entrance fees. All major power utilities will also raise household electricity rates for October usage.