NHK Survey: Over 80% of Japanese Firms Plan Price Hikes in 2025

Rising Costs of Raw Materials, Energy, and Labor Drive Widespread Pricing Adjustments

A recent survey by NHK has revealed that a significant majority of major Japanese companies plan to raise prices in 2025, as they grapple with increasing costs of raw materials, energy, and labor. The findings reflect ongoing economic pressures shaping Japan’s corporate strategies for the year ahead.

Widespread Price Hikes Expected

The survey, conducted between mid-December and mid-January, targeted 100 leading firms, with 68 responding. Among them, 84% indicated plans to increase prices this year, while 15% expected to maintain current levels. Only 1% projected a reduction in prices, underscoring the prevailing cost challenges businesses face.

Key Drivers Behind Price Increases

When asked about the reasons for price hikes, companies cited multiple factors:

• Rising Raw Material and Energy Costs – The most commonly mentioned reason, reflecting global inflationary trends and supply chain disruptions.
• Higher Personnel Expenses – Many firms pointed to the need for wage increases and other labor-related costs as a significant factor.
• Profitability Adjustments – Some businesses are using price revisions to strengthen long-term financial stability.

Companies Holding Prices Steady

For the minority of firms choosing to maintain or lower prices, strategic considerations played a crucial role. Common reasons included:

• Customer Retention Concerns – Some companies fear that price hikes could drive customers away.
• Competitive Pricing Strategies – Certain firms aim to differentiate themselves through stable pricing.
• Operational Efficiencies – Businesses are restructuring production processes to absorb cost increases rather than passing them on to consumers.

Economic Outlook and Market Dynamics

As Japanese companies navigate inflationary pressures and evolving market conditions, price adjustments are becoming a key tool in maintaining financial health and competitiveness. The survey results highlight the delicate balance businesses must strike between cost management and consumer demand, setting the tone for Japan’s economic landscape in 2025.