Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Master High-Probability Trades! | Tuesday, March 21, 2023 | 11:00AM PST Enroll Now
BOJ flags broadening price increases in once deflation-prone Japan
© Reuters. FILE PHOTO: People wait for change of traffic sign in front of a shop at Ginza shopping district in Tokyo, Japan, May 28, 2022. REUTERS/Kim Kyung-Hoon/File Photo
TOKYO (Reuters) - A wider range of Japanese companies are raising prices, including those in sectors historically reluctant to pass on higher costs to customers, a Bank of Japan research note said on Wednesday in a nod to broadening inflationary pressure.
A thorough analysis of the BOJ's "tankan" quarterly business survey showed price increases were spreading to many industries, including electronic goods retailers and drug stores, which are known for luring customers with big discounts, the note said.
Some companies that raised prices did so for the first time in 30 years after a sharp rise in raw material costs, the research note said.
"Hearings conducted on companies showed that when a firm with a big market share in the industry raises prices, others tended to follow suit," the research note said.
The BOJ's occasional research notes, produced by its staff, do not represent the central bank's official view but tend to shed light on topics that are deemed important for monetary policy decisions.
Japan has been mired in decades of deflation and low inflation as many companies avoided raising prices for fear of scaring away cost-sensitive consumers.
That is starting to change as Russia's invasion of Ukraine and supply constraints caused by the COVID-19 pandemic sharply push up fuel and raw material prices, forcing companies to pass on higher costs to households.
Japan's annual core consumer inflation hit a 40-year high of 3.6% in October, well above the BOJ's 2% inflation target, in a sign of the pain soaring import costs were inflicting on households.
BOJ Governor Haruhiko Kuroda has said the bank will maintain ultra-loose policy until inflation is driven not just by such cost pressures, but strong demand and higher wage growth.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.