The government may raise prices of the grain sold to flour millers by more than 20 percent in October, adding to production costs for bread and noodle makers, an official said Tuesday.
The expected gain, following a 30 percent increase in April, would reflect rising costs to import the grain for the eight months to July 31, the official said. He declined to be identified as the government has not yet made a decision.
An increase in wheat costs could spur companies such as Nisshin Seifun Group Inc., Japan's biggest flour miller, and Yamazaki Baking Co. to raise product prices, accelerating food inflation. Wholesale prices rose in May at their fastest pace in 27 years.