Japanese Consumer Prices Are on the Increase

Consumers in Japan have to shell out more for everyday goods. The consumer price index has been climbing recently, making everyday items like vegetables, fish and rice cakes, but also cereals and wheat flour more expensive, according to the Statistics Bureau.

According to reporting by the Financial Times, Coca-Cola was raising its prices in the country for the first-time in 27 years. Nissin cup instant noodles will also cost ¥14 to ¥32 (US$0.04 - US$0.08) more soon. Prices at Starbucks have also increased.

The development is connected to intense labor shortages that Japan is experiencing. Unemployment in Japan was at a 25-year low of 2.4 percent in March. Nissin was citing growing labor costs, as well as rising ingredient and material costs for the price hike effective June 1. Low inflation far below the 2 percent goal is also not helping employers to save on labor costs anytime soon.