business

Get ready to pay more: Over 40% of Japanese firms to raise prices within a year: survey

43 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© KYODO

©2022 GPlusMedia Inc.

43 Comments
Login to comment

But not wages? Ist that the PMs urge?

13 ( +19 / -6 )

I understand the price hike is inevitable due to Cogs increase in this situation. From the consumer point of view, it would be better that the firms to make effort to improve the quality of the service at the same time.

15 ( +17 / -2 )

Get ready to pay more: Over 40% of Japanese firms to raise prices within a year: survey

How much that rise? If still less inflation then it's no use.

-11 ( +2 / -13 )

If they also plan to pay higher wages then no problem.... But we all know that's a big IF...

8 ( +14 / -6 )

Hyperinflation in the mail!

4 ( +10 / -6 )

Over 40 percent of Japanese companies are raising prices within a year amid rising material costs caused by the COVID-19 pandemic and Russia's invasion of Ukraine, a survey by a credit research firm showed.

Previous reports about the large supplementary budget said there were subsidies to firms "to assist them in passing on rising costs to consumers".

Is Kishida's "new capitalism" taxpayers subsidizing firms' price hikes then also paying at the cash register?

Having corporations bottom line as the highest goal in the land that the populace must sacrifice for is certainly a hyper form of socialism for the rich.

5 ( +15 / -10 )

Everything here already costs more - enough more that I'm noticing it at the grocery store. Definitely over 10% more, nearly 20% is my feeling, but I don't have direct comparisons.

19 ( +22 / -3 )

Raising prices without raising wages.

That's the Japanese way.

8 ( +30 / -22 )

Prices increasing and salaries devreasing. This has been the trend in Japan for over 20 years.The middle class is disappearing rapidly. Japan is becoming a society of those who have and those who have not.

7 ( +22 / -15 )

Wages will never rise until more Japanese are willing to jump companies. Companies themselves will never give out raises to current employees, but if you jump right now you will get at least a 50% raise and oftentimes more than double for the same positions. There’s no system for raises in most Japanese companies’ HR rules. Even for their highest performers more than 2% annual raise is impossible yet most companies are willing to pay double for an untested new transfer for the same or sometimes lower positions. Japanese workers are doomed if inflation goes past 1% as most workers gets no annual raises or less than 1% in raises for every year of experience

2 ( +14 / -12 )

Dear oh dear....

And with zero increase in wages.

4 ( +20 / -16 )

How about salaries?

11 ( +20 / -9 )

Inflation, higher taxes, higher cost of goods, higher cost of living, 3 decades of stagnant wages and a government that throws money they don't have at companies that are already sitting on giant stockpiles of cash, the world's most rapidly aging population and the worlds highest national debt. (Currently around 230% of its GDP)

When will the Japanese people wake up and realize that the government that has monopolized their democracy is nothing but a consortium of self-serving old men who let Japan slip into the 3rd world?

3 ( +19 / -16 )

I’m already hearing talk from young university students that upon graduation they want to leave Japan.

Never heard that before now…

0 ( +17 / -17 )

That’s a miscalculation, of course. No one pays more and no one pays those higher prices (on average) because no one has got more money to pay more, or have you and you? I guess, no. So if they massively raise the prices, some pay them and some who formerly paid don’t pay anymore at all , but in best case pay instead the now also raised higher prices of another cheaper company. In fact it only leads to ‘deadly’ survival wars amongst the rivaling companies. The consumers just are not affected so much as they of course still have the unchanged basic needs of some meals a day, clothes, accommodation and other basics like water, energy etc. That doesn’t change, but of course everyone will be forced to delete a certain part of other companies’ names on their list of usual suppliers. So the worst case would be that many companies have to give up although having demanded higher prices, then also many employees lose their jobs and a downturn spiral accelerates. Also in that case of course even less will pay the raised prices.

-3 ( +7 / -10 )

The globalists mandated lockdowns were meant to slow down money velocity during which money was printed to add to the circulation. We are now opening up and many erroneously think this is a victory. Absolutely not! People will begin to buy goods and services and economic transactions will increase but the globalists have messed up the supply chain, so much money in the circulation and you end up with hyperinflation. Hyperinflation will destroy currencies and this is their main aim: to destroy the world economy so that the World Economic Forum guys can usher the world to a new world order, a one world economy, one world govt that will be ruled by the final @n+!chr!$+. The world is being prepared to switch to digital currency and when we have that, say goodbye to your individual liberty because if u are not a compliant global citizen, you will not be able to join society and enjoy its opportunities. Maranatha!

-1 ( +11 / -12 )

we all know wages won't keep pace but the electorate will keep voting LDP. Japan would be perfect for a universal basic income to make up for the decades of sacrifice for companies

-3 ( +8 / -11 )

I’m so glad I don’t have kids in Japan. I see all my friends with kids continually broke because prices keep rising, yet salaries don’t keep pace.

-8 ( +14 / -22 )

Foreign companies and Foreigners will take over the business places.

They will make money but not spend it in Japan.

Japan needs more money for military spending.

Quasi hyper deflation of the dilly dally nation

-20 ( +7 / -27 )

Gee. Surprise surprise.

-7 ( +5 / -12 )

How ironic that the Japanese government has been hoping for inflation for decades to combat the deflation we’ve had.

Unfortunately it’s bad inflation now (prices of necessary goods go up due to supply issues - Covid lockdowns in China, backlog of supply chains, war in Ukraine etc ) as opposed to good inflation (wages go up, demand for goods, companies hire more workers, people have more spending money etc)

9 ( +11 / -2 )

I think it is going according to the Kishida and big corporations' plan.

The plan is to bankrupt Japan and implement digital yen as debt to GDP is at 266% and we all know it won't go away by itself.

The best way is just to default and have a fresh start.

-17 ( +2 / -19 )

This is definitely happening. The World Bank expects oil prices to stay high for three years :(

The war in Ukraine means limited wheat exports. High oil and gas prices also mean less planting and lower yield in other countries. High gas prices make nitrate fertilizers unaffordable. All food will go up further.

Covid-19 was a fine example of a "rainy day" we were supposed to save for, but it looks like there is more pain on the way. Covid was a hard economic hit, but only to certain sectors, tourism, leisure, etc. This will be duller, but will hit everybody. As the posters above say, the focus in Japan should be on wages. As a personal request, I'd also like to see some sensible reporting about this. Not just more sensationalist clickbaity throwaway nonsense about "umaibo snacks are now 2 yen dearer!" which belittles people's struggles and insults their intelligence.

11 ( +14 / -3 )

Firms will also have to get ready to pay more in terms of salary/wages if they want to retain/attract employees.

5 ( +5 / -0 )

I'm actually surprised prices aren't higher already given the weak yen and how much imports such as oil and other raw materials/commodities have gone up. It's probably inevitable higher prices will be passed on to the consumer later this year, especially when govt subsidies end. Probably only resource rich countries will be able to afford to maintain real wages. In Japan there will be stagflation and shrinkflation. I think with people having less money to spend something will have to give and I predict it will be the housing market - fewer young people will buy/rent and start families. More will live with parents for longer, downsize, go for cheaper accommodation or work overseas.

1 ( +6 / -5 )

NeoLiberal supply side economics. Here is a good article. https://www.forbes.com/sites/williampesek/2022/04/28/zombified-japan-shows-world-how-not-to-spend-5-trillion/

0 ( +3 / -3 )

Wow, Fumio's "social capitalism" died out, like, really quick. It barely made it past the last election (#scarcasm).

"We cannot keep running the company unless we raise prices" as various costs are increasing, a food manufacturer in Hokkaido, northern Japan, said, according to the survey.

This says it all, critical goods are going to see their prices rise and the most vulnerable in society are going to have to take the blunt force of the impact.

3 decades of hubris, mismanagement and short-sightedness. All this in the name of keeping their cushy seats (the politicans) and "stability" (the voters). Job well done, lads. Deserves some patting on your own shoulders.

-8 ( +4 / -12 )

Get ready to sell less: Over 90% of Japanese consumers to reduce expenditure within a week: survey

0 ( +5 / -5 )

I'm not sure I buy all the reasons (supply chain, covid, Russia) for the inflation. Let's see how it plays out here and in the U.S. when consumers vote with their dollars and a percentage of unchosen businesses fail. The old plan was bailouts, even if the consumer simply opted out of the product. Not sure if that will work this time. A free market should lower prices sometime soon, right?

-2 ( +2 / -4 )

Inflation deflation Japan has become the whoopie cushion of Asia.

-14 ( +3 / -17 )

When I first moved to Japan in 2001 a public ALT salary was ¥250,000 per month with full salary for the school vacation periods, about ¥3million a year. Now, public school ALTs are paid ¥10-12,000 per day, including transport, around ¥1.5 million per year with no stipend payments for public holidays or school vacation periods. Universities no longer employ full time English teachers. They are all on a part time per-lesson contracts. This is a perfect example of Japanese salaries in general. Living expenses have increased by 50% in the last two decades, but salaries have decreased by 50% over the same period.

And, before the comments start, I did not stay in public schools for very long. I changed to private schools and colleges. The money wasn’t much better but at least they paid for the vacation periods. I left Japan 3 years ago due to becoming a financial prisoner with health insurance, pension, rent and utilities. I had a good job and a decent salary but I was still living month to month with little disposable income.

-1 ( +4 / -5 )

Rising prices and decreasing salaries... That's Japanese economic theory worthy of a Nobel Prize!

-6 ( +4 / -10 )

All that happens due to sheep voters.

Inflation is worldwide.

Only countries with resources are having good financial times.

7 ( +8 / -1 )

Japan is little late to the hyperinflation party that is going on in other countries. In the US, gas is up 80% in my area. Food, essential everyday products, and virtually everything else is up double digits percentages. On many products, they are not only increasing prices, but also decreasing the amount or quantities. It is a double whammy. Not good.

3 ( +5 / -2 )

Back to being island people eating fish and soba and tofu. That is the core of Japan. Maybe it's time to stop competing.

-1 ( +10 / -11 )

Back to being island people eating fish and soba and tofu. That is the core of Japan. Maybe it's time to stop competing.

Sounds good to me.

0 ( +8 / -8 )

"Shouganai, ga-man" - says everyone who is getting their backs stabbed

-4 ( +4 / -8 )

Will be increasing more spending on products from Daiso I suppose.

-4 ( +3 / -7 )

The situation sucks. I've been told by a number of my favourite food trucks, obento sellers and other small business they have to raise their prices. I love those guys but I can't afford to continue supporting them as much as I've tried to do during the pandemic. With inflation and no salary raise your salary is not even staying stagnant, it's basically going down.

3 ( +5 / -2 )

Last 30% are arrogant sad looking malnourished young folk who always look unhappy and also are aggressive to anything foreign 

Not to mention totally clueless as to who’s responsible and what to do about it, even if they did.

I’m already hearing talk from young university students that upon graduation they want to leave Japan.

Presumably in the direction of countries that, unlike this one, aren't into trying to prove Einstein’s definition of insanity wrong. And all the while, no hint they’re even aware of the cognitive dissonance that their three wise monkeys denialism imposes on them.

-6 ( +4 / -10 )

Back to being island people eating fish and soba and tofu.

Bit less of the soba,perhaps.Most buckwheat comes from Russia,sadly.

-3 ( +5 / -8 )

@Mr Kipling What good is higher wages when inflation wipes out those wages. For example you get a pay increase which is considered a higher wage but at the same time goods and services increase 3 times the wage increase. I have friends who complain they have received a pay increase only to see the increase was wiped out by the landowner increasing their rent twice or three times the amount. What good is it to go to a store and see a 50% discount on an item that has already been increased by 50% the problem is people can't do the math or think logically to see the store is still getting its set price.

If they also plan to pay higher wages then no problem.... But we all know that's a big IF...

1 ( +1 / -0 )

What good is it to go to a store and see a 50% discount on an item that has already been increased by 50% the problem is people can't do the math or think logically to see the store is still getting its set price.

you must not be the commercial guy of your company fellow !

I still prefer any wage increase then find another landowner and another grocery store while we are at it.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites