Japan’s Price Rises Backfire

TokyoUniqlo reversed a sock price increase within days.

Firms facing soaring costs in Japan struggle to pass them on to consumers raised in deflation.

Tsutomu Watanabe, a University of Tokyo economist, says pay rises are insufficient, so consumers still dictate company pricing power.

“I would rather persevere myself,” said Sachi, 68, an Okayama ramen shop owner delaying a price rise.

The Bank of Japan, whose rate stands at 1.25% as of November, decides on 18 December.

Sources: South China Morning Post