Japan faces surge in food price hikes as inflation pressures intensify | Forexlive

Japanese households are set to face sharper cost-of-living pressures in July, with a private survey showing food price hikes on more than 2,100 items — a five-fold increase from a year earlier. The average price increase is expected to be around 15%, according to Teikoku Databank, which surveyed 195 major food manufacturers. More from the survey:

• broad-based increases
• being driven by higher raw material and utility costs, rising labour and transportation expenses
• momentum for price hikes in 2025 is stronger than last year’s

Teikoku warned that further spikes in crude oil — particularly if Middle East tensions escalate — could trigger a fresh wave of inflation similar to 2022, when nearly 26,000 items saw price hikes.

The data add to pressure on the Bank of Japan, which has so far resisted further rate increases and looks set to hold until next year:

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Coming up this week is the BOJ’s quarterly tankan survey, due Tuesday. Expected to show:

• weakening sentiment among large manufacturers
• capital spending plans remaining robust despite risks from US trade policy

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