Firms' Recent Price-Setting Stance:
Evidence from the Tankan
February 2, 2023
IKEDA Shuichiro, KONDO Takuji*, KURACHI Yoshiyuki, MATSUDA Taichi, YAGI Tomoyuki
Research and Statistics Department
*Currently at the Personnel and Corporate Affairs Department
With raw material costs increasing significantly due to high commodity prices and the yen's depreciation, firms' moves to pass on the rise in costs to selling prices have become widespread. This paper examines this recent price-setting stance of firms using microdata from the Tankan surveys. The analysis finds that in the current phase, moves to raise selling prices have been spreading even among business types and firms that were cautious about changing such prices. In addition, the results suggest the possibility that, with many firms facing significant cost increases, firms' price-setting stance has been affected by a situation in which their competitors are also forced to consider raising prices.
The Bank of Japan Review Series is published by the Bank to explain recent economic and financial topics for a wide range of readers. This report, 2023-E-2, is a translation of the Japanese original, 2022-J-17, published in November 2022. Views expressed are those of the authors and do not necessarily reflect those of the Bank.
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