Calbee Inc. is raising prices again as companies have trouble absorbing costs that are climbing at the fastest rate in years. The Tokyo-based company said in a statement it will raise the prices of snacks and cereals in Japan by 5% to 20% from September because of increasing material costs. Its shares advanced as much as 5.1% in Tokyo after the announcement, their biggest intraday gain in more than a month.
Rising food prices are especially sensitive in Japan, where stagnant wages make it hard for households to cope with a rush of price hikes for everything from burgers to beer. The yen’s slide to a 24-year low against the dollar is also exacerbating price pressures for the resource-poor archipelago, which is heavily reliant on imports for energy and food.