In May, the end of subsidies for utility bills will hit household budgets directly…400 items will have their prices increased.When will the “ultra-weak yen” have an impact? : Tokyo Shimbun TOKYO Web

The price hikes for food items scheduled for May will be on about 400 items, which will be a lull compared to April when prices were on 2,800 items. However, from May onwards, electricity and gas prices will rise due to a reduction in government subsidies. The yen is further depreciating, and there are signs that prices of imported goods will rise again from around fall. It seems unlikely that the burden on household finances will ease.

◆Price increases for beverages and olive oil

In terms of food, the prices of soft drinks, instant coffee, and olive oil are most likely to rise. According to research firm Teikoku Databank, the main factors appear to be soaring material costs for containers and unseasonable weather in countries where coffee and olives are produced.

For soft drinks, Coca-Cola Bottlers Japan will raise the suggested retail prices of 45 items and Asahi Soft Drinks will increase the suggested retail prices of 42 items, mainly for plastic bottles. For some products, the price increase will be around 40%. For coffee, UCC Ueshima Coffee and Nestlé Japan have increased prices, mainly for instant coffee. J-Oil Mills and other companies are increasing the price of olive oil for home and commercial use.

Electricity and gas rates are also expected to rise from May onwards. Starting in May, government subsidies will be reduced from the current 3.5 yen per kilowatt hour for household electricity to 1.8 yen, and for gas from 15 yen per cubic meter to 7.5 yen. For a household using 260 kilowatt hours per month, the subsidy alone would increase the price by 442 yen.

On the other hand, the yen continues to depreciate, with the exchange rate hitting the 155 yen level to the dollar, and it is expected that prices of imported goods will continue to rise. A person in charge of the Ministry of Internal Affairs and Communications, which publishes the Consumer Price Index, said, “It generally takes about six months for the impact of a weak yen to be reflected in domestic import prices,” and the current yen depreciation is likely to be around autumn. It may be reflected. (Taro Suzuki)