A rare price hike by a Japanese brewer has intensified a debate over whether local firms are finally shunning their decades-old deflationary mindset in a bid to protect profit margins.
Shares of Asahi Group Holdings Ltd. jumped as much as 7% last Wednesday after the company said it would raise prices for its Super Dry beer and other beverages for the first time in years. Convenience-store operator Lawson Inc. last month said it would increase rates for its popular "Kara-age Kun” fried chicken for the first time in 36 years.
While inflation in Japan is still muted versus other nations, energy and input prices for businesses have been climbing at the fastest pace in over four decades — thanks to supply disruptions caused by the war in Ukraine and the yen’s plunge.