TOKYO: Japan is likely to face higher food prices in the coming months as import costs of materials become more expensive due to a weaker yen.
According to a survey by a credit research company, the prices of more than 10,000 items are set to rise starting from this month onward.
The Kyodo News reports that the Teikoku Databank survey found prices of 2,431 items are scheduled to rise in August, while 8,043 more items will become more expensive later this year.
The company compiled the data on price hikes from 105 major food and beverage companies listed on stock exchanges.
With these price increases, more than 18,500 items in Japan have become more expensive since the beginning of the year, with the average margin of increase at about 14 per cent.
The company said the total number of items could eventually exceed 20,000 by the end of the year if inflation continues at the current rate.
"Companies are becoming less hesitant to raise prices. They are getting quicker to make a move as they see an increasing number of competitors charging more for everything from pasta to chocolates," a Teikoku Databank official in charge of the survey said.
The company said that the depreciation of the Japanese currency has been pushing up the import costs that are denominated in yen. Soaring costs for materials such as wheat and edible oil as well as for logistics have caused more items to face price hikes twice or more.
October will see price spikes for the largest number of items with 6,305 products, followed by August's 2,431 and September's 1,661.
The survey said 7,794 processed foods such as sausages and frozen foods will be more expensive, while 4,350 condiments including dressings and mayonnaise, and 3,732 liquor and beverages will also be affected.
Meanwhile, in another development, around 42 per cent of major companies in Japan expect the country's economy to slow down over the next 12 months.
A Kyodo News survey showed this was the result of surging commodity costs and the yen's weakness.
The survey of 114 companies, including Toyota Motor Corp. and SoftBank Group Corp., showed that Japanese blue chip companies were becoming increasingly pessimistic about the country's economic outlook.
This is up from 12 per cent who believed so at the beginning of the year.
The Kyodo survey was conducted from mid to late July and covered leading companies in each sector.
The survey showed that those who believe Japan's economy will expand shrunk to only 55 per cent from a high of 90 per cent just a year ago, and 84 per cent earlier this year.
The survey results come amid crude oil and commodity prices that are at historic highs as countries attempt to restart their economies after the pandemic slowed down global trade and also the effects of the Russia-Ukraine conflict, which has further aggravated supply chain constraints.
The Kyodo News report said the yen has been in a freefall against the US dollar in recent months, hitting a fresh 24-year high last month as both countries adopted contrasting approaches in monetary policies.
The US Federal Reserve has pushed for aggressive rate hikes while the Bank of Japan has maintained an ultra easy monetary policy.
Although some companies said the BOJ's hard stance to maintain its ultra easy monetary policy has caused the yen to weaken and push up import prices, 37 per cent said its continuation was necessary.
The survey also found that almost 40 per cent of the firms believed Covid-19 should be treated in a similar manner to seasonal flu.
Although Japan's daily Covid-19 infection numbers have been hitting record highs in recent weeks, the government has resisted imposing restrictions on people's movement, although there have been mounting calls to speed up its review of measures against the disease.
More than half the respondents also supported the need to save power, followed by increased implementation of solar and wind power. About 39 per cent backed restarting nuclear reac
More than half the respondents also supported the need to save power, followed by increased implementation of solar and wind power. About 39 per cent backed restarting nuclear reactors to cope with the power crunch faced by the nation.