Crude oil and petrochemical costs are flowing into Japan's consumer prices at an unusually fast pace, lifting costs across everyday goods, Nikkei reported Thursday.
At a tofu shop near Tokyo's Sensoji Temple, prices for unpressed tofu rose to 250 yen from 220 yen after suppliers increased charges for plastic packaging, according to the report.
The supplier had warned of at least 30% higher costs in early April following a jump in oil prices after conflict involving the U.S. and Iran escalated. Plastic trays used in packaging depend on propylene derived from naphtha, much of which Japan imports from the Middle East, where shipping disruptions have tightened supply, the report said.
The impact of higher input costs has reached retail shelves in as little as two months in some cases, compared with a typical lag of about six months, according to the report.
Some manufacturers are also adopting force majeure clauses as supply risks increase, particularly in industrial sectors, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)