Photo/Illutration Cartons of third-category near-beer products stacked up at a retailer in Tokyo on Sept. 25 to meet rush demand ahead of a liquor tax hike from October (Kentaro Uechi)

The cost-of-living crisis shows no sign of easing as companies plan to forge ahead with higher prices for goods and services, including food items.

A survey of 195 leading food manufacturers by Teikoku Databank Ltd. found that the prices of 4,634 items will increase in October. The figure compares with 7,864 items a year ago.

When increases planned by the end of the year are included, prices will rise for 31,887 items, up about 20 percent from 2022.

Price increases will average 15 percent this year, compared with 14 percent in 2022.

With revisions to the liquor tax effective as of Oct. 1, the price difference between beer and a type of cheaper quasi-beer alternative will narrow.

The tax on so-called third-category beer-like beverages was raised by about 9 yen per 350-milliliter can, while the tax on regular beer was lowered by about 7 yen.

As prices of crude oil and gasoline remain high, electricity bills and gas prices, as well as a range of costs from distribution services to plastics products, have risen.

Imported products have also become more expensive due to the lackluster yen.

In response to the increased cost of living, the nationwide average of minimum wages will increase to 1,004 yen per hour from October, topping the 1,000-yen mark for the first time.

The minimum wage will be raised by 39-47 yen, depending on the prefecture.

Welfare benefits will increase by 1,000 yen per month from October for each person in a household eligible for livelihood protection, also reflecting higher commodity prices.

In medical care, those infected with the novel coronavirus will face a greater financial burden.

Until September, COVID-19 medications were fully covered by public health insurance systems.

From now on, patients will shoulder up to 3,000 yen if they are required to pay 10 percent of medical expenses out of pocket. The maximum amount will be 6,000 yen for those who pay 20 percent and 9,000 yen for those who pay 30 percent.

Patients will receive up to 10,000 yen a month in subsidies for COVID-19 medical expenses in hospital on top of the amount covered by the existing high-cost medical expense benefit, down from the current 20,000 yen.

(This article was written by Kentaro Uechi and Mirei Jinguji.)

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