Japan faces October price rises across food and daily services
Beer prices will fall as taxes change, but quasi-beer and heated tobacco will cost more, while Yu-Pack’s basic delivery charges will rise by 10% on average.
- Over 3,000 food and drink products are scheduled for price increases in October due to rising raw material and labor costs.
- Daily services will also become more expensive, including an 8.1% average increase in Metropolitan Expressway tolls and a 10% rise for Japan Post's Yu-Pack parcels.
- Due to tax reforms, prices for quasi-beer and heat-not-burn tobacco will increase, while the cost of traditional beer is expected to fall.
October’s combination of higher food prices, delivery charges and road tolls is likely to leave Japanese households facing a heavier financial burden. Quasi-beer and heat-not-burn tobacco will also cost more, although beer prices will fall.
Research firm Teikoku Databank, Ltd. puts the number of food and drink products due for price increases during the month at 3,033. Cost pressures will persist across a broad range of goods and services as raw materials and labour remain more expensive.
For Koike-Ya Inc.’s Karamucho hot chilli potato crisps, a 55g pack currently retailing at around 183 yen will carry a new price of about 189 yen.
From Thursday, motorists using the Metropolitan Expressway will pay 8.1% more in tolls on average. On the same day, Japan Post Co., Ltd. will introduce an average 10% increase in the basic charge for sending a Yu-Pack parcel.
from 197 yen. Buyers of Ichiban Shibori, made by Kirin Brewery Company, Limited, will instead pay around 228 yen for a 350ml can, compared with roughly 237 yen now.
A common tax rate taking effect on Thursday explains the diverging prices for beer and related drinks. Each 350ml can of beer will carry about 9 yen less in tax, but the levy on happoshu and third-segment beer will be about 7 yen higher for the same volume.
Manufacturers will respond to the reform with cheaper beer. For their quasi-beer lines, reclassification as beer will come first, followed by higher prices.
Suntory Spirits Ltd.’s third-segment beer Kinmugi will cost 206 yen, up
Philip Morris Japan Limited’s TEREA sticks will move to 640 yen from 620 yen.
The price per packet for Japan Tobacco Inc.’s EVO range will be 620 yen, against 580 yen now.
Behind these increases is a higher levy on heat-not-burn tobacco, which will bring its tax rate into line with that on cigarettes.
Employers will take on additional duties towards both job applicants and staff in October.
They will have to introduce measures against sexual harassment of applicants, including students looking for work.
Under the Japanese government’s requirements, companies must also set out clear policies to protect employees from customer harassment and establish a consultation system.
