There might be a shift in the pattern of price escalations, which has been intermittent since 2022, by the year 2024.

On the 30th, Teikoku Data Bank reported that major food manufacturers are expected to raise prices on approximately 10,000 items in 2024, marking a significant decrease of about 70% compared to the previous year. This reduction is attributed to cost absorption through price transfers, resulting in improved profitability. The company foresees a calming effect on the rush of price increases that has persisted for the past two years.

As of the same day, 195 major food manufacturers had announced that only 1,596 items would experience price increases from January to April 2024, representing a significant decrease of 90% compared to the previous year. While intermittent price increases may still occur in the future, it is expected that the series of rapid price hikes will subside by spring 2024.

In total, from January to December 2023, the number of items subject to price increases reached 32,395, marking a 26% increase compared to 2022.

Source:Nikkei 30th Nov 2023.