Get ready for more price hikes this July

It's not great news, but it looks like we're all going to be facing another wave of price increases this summer, with the cost of everyday food and beverages set to climb sharply this month. According to a survey by Teikoku Databank, 195 major food companies plan to raise prices on 2,105 items during July, which is a staggering five times more than the same month last year.

This marks the seventh straight month where price hikes have outpaced the previous year, setting a new record (and not the good kind) for consecutive monthly increases since tracking began in 2022. Analysts warn the upward trend is likely to continue into autumn, with the total number of food and beverage items seeing price increases expected to exceed 20,000 for the year.

Potato chips are one of the items set to increase in price this month.

Breaking down the data from the survey, condiments are accounting for the largest share by far, with items like curry roux, dashi products, and spices making up over 1400 of the planned price hikes. Confectionery products such as chocolate, chewing gum, and potato chips were next, with nearly 200 of those items set to see increases. In addition, processed foods including rice and pasta sauces continue to feel the pinch of higher ingredient costs.

The primary drivers are pretty familiar at this point, including things like soaring raw material prices, expensive utilities, rising logistics costs, and labor shortages pushing up wages. In fact, nearly 97% of companies mentioned higher raw material costs as a reason for the hikes, while over half pointed to rising labor expenses, reaching a record high since this category was first tracked in 2023.

At this point, how are you continuing to cut expenses if you're on a tight budget?