Japan may experience another round of broad-based price increases around summer, as firms from food makers to hot spring facilities consider passing on soaring energy costs from the Middle East conflict, the central bank said on Friday.
Shedding their long-held practice of keeping prices low, many service-sector firms are steadily passing on rising raw material and labor costs, the Bank of Japan said in a report based on a survey of regional firms conducted from January to April.
Rising energy costs from the Middle East conflict are also prodding firms to accelerate price increases under business plans for the fiscal year that began in April, the report said.
Some have already decided to raise prices at a faster pace, while others said they will decide around summer or beyond.
The report underscores the BOJ's growing attention to inflationary pressures, adding to the case for a near-term interest rate hike.
