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McDonald's hikes prices in Japan



McDonald's Japan has been raising prices on about 60% of its products since September 30.
McDonald's - unsplash

McDonald's has decided for the second time in a year to raise menu prices in Japan on the background of the declining national currency. Thus, the company joined the long list of businesses that are feeling the effects of the weakening yen and the highest inflation rate in a decade.

News agencies reported that McDonald's Japan has been raising prices on about 60% of its products since September 30. The company said it was taking the step because of "recent spikes in raw material prices, rising labor, logistics and energy costs, and sharp currency fluctuations."  

Inflation in Japan in August was 2.8%, the highest in thirty years. The rise in prices is due to higher energy costs due to recent events in Russia and Ukraine, as well as supply chain disruptions and supply difficulties.

For McDonald's, additional difficulties arose due to the Central Bank's policy against the background of a stronger dollar. The company is especially dependent on imports, using imported fries from the United States. 

In March 2022, McDonald's already raised prices on about 20 percent of its menu items in Japan, noting increases in the price of important ingredients such as beef and wheat.


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