Japan Foodstuff Prices on Rise amid Robust Demand in China
Tokyo, June 26 (Jiji Press)--Prices of foodstuff have been on the rise recently in Japan due in part to a spike in demand in China.
Producers have been unable to absorb the rising costs of ingredients, and the climb in prices of cooking oil, flour, imported meat and other foods is expected to deal a blow to household finances.
Nisshin Oillio Group Ltd. <2602>, J-Oil Mills Inc. <2613> and Showa Sangyo Co. <2004> plan to hike prices of household-use cooking oil by about 50 yen per kilogram in August due to a resurgence in demand in China, which recovered early from the coronavirus crisis.
"(The rise) may not be temporary, as the supply-demand balance may become tight structurally" due to global population growth and the rising use of vegetable oil as diesel fuel as a measure against climate change, an official at Nisshin OilliO Group said.
The producers plan on raising the prices of cooking oil for commercial use as well.
[Copyright The Jiji Press, Ltd.]