Yamazaki Baking: will raise prices for the first time in 17 years

Tokyo / JP. (yb) Yamazaki Baking Co. Limited will raise its prices – for the first time since 17 years. The group is Japan´s largest manufacturer of bread, sweet buns, Japanese- and Western-style confectionery, processed bread, prepared rice and side dishes. The Tokyo-based company also sells other products procured from other companies. Prices will grow in an average of eight percent from December 01 because the cost of imported wheat has climbed 11,3 percent this year. The company also cites higher costs of dairy products and wrapping materials. Yamazaki Baking follows Japanese noodle and mayonnaise manufacturers, whose recent price increases have spurred consumers´ inflation expectations. «This is just the beginning, as only a handful of companies are raising prices», said Yoshimasa Maruyama, a senior economist at BNP Paribas Securities Japan Ltd. (Tokyo), to «Bloomberg». «That may make it easier for other companies to raise prices as consumers become more accepting of higher costs». In reaction to the announcement Yamazaki Baking shares rose 39 JPY or 4,1 percent to 998 on the Tokyo Stock Exchange.