Close to 80% of large Japanese firms are passing on higher commodity costs to customers or intend to do so, a Reuters poll has found, a sharp rise from the previous survey six months ago as surging input prices and a weak yen drive up import costs.
Almost three quarters of firms polled also intend to lift prices of their main goods and services in the latter half of this year, illustrating a shift away from a cautious, deflationary price-setting mindset.
For years, Japanese firms have cut or kept prices steady, fearing that raising prices could scare away consumers accustomed to cheaper goods and services, in turn sending prices and wages into a downward spiral.