According to CCTV News, recently, the Bank of Japan issued a report saying that the judgment of Japanese companies on the economic outlook has deteriorated for the first time in the past year and a half, which shows that the rise in raw material prices under the situation between Russia and Ukraine is effectively affecting many industries in Japan.
In Turkey, inflation exceeded 61 percent in March, driven by the Russian-Ukrainian conflict and soaring energy prices.
According to the reference news quoted by the French "Echo" website reported that Inflation in Europe has exceeded expectations, the report believes that 2022 is likely to be a year of stagflation in Europe, that is, high inflation and low growth will occur at the same time.
Rising raw material prices in Japan have rippled through a number of industries
The main commodities of large chain convenience stores have increased in price
According to CCTV News, on April 1, local time, the Bank of Japan issued a report saying that the judgment of Japanese companies on the economic outlook has deteriorated for the first time in the past year and a half, which shows that the rise in raw material prices under the situation between Russia and Ukraine is effectively affecting many industries in Japan. Among them, the trading price of non-ferrous metals has risen sharply, and even began to affect the daily life of ordinary people.
Image source: Visual China VCG111370536893
Affected by the situation in Russia and Ukraine, the prices of non-ferrous metals such as copper, aluminum and nickel have risen sharply recently, and some have even hit new highs. The head of a shop near Sensoji Temple in Tokyo said that the price of kitchen supplies such as copper pots has risen by more than 10 percent, and it is likely that prices will continue to rise next.
The rise in the price of non-ferrous metals has had a considerable impact on other industries in Japan, including the construction and decoration industries. For example, doors and windows and buildings require a large number of copper, aluminum and other materials. According to reports, 15 major building materials and home furnishing companies in Japan have recently announced price increases, with the highest increase of nearly 40%, mainly due to the price increase of raw materials such as non-ferrous metals.
In addition, according to interface news quoted by the Japan Broadcasting Association (NHK) website on April 5 news, due to the impact of rising raw material prices, several large chain convenience stores in Japan have raised the sales price of bento and other major commodities.
Among them, 7-11 Japanese companies have raised the sales prices of about 60 kinds of goods such as bento, noodle foods, and bread since this week, ranging from about 2% to 15% of the selling price excluding consumption tax. Although the company had raised the selling price of some sandwich items in March this year, the company believed that it was necessary to re-examine other products and finally made the decision to raise them.
FamilyMart has also raised the sales price of 10 kinds of fried foods cooked in the store, such as meatloaf and some fried chicken nuggets, from April 5 to 3% to 12% of the sales price including consumption tax. In addition, the company plans to raise the selling price of food products such as bento boxes and salads by about 15%, and is currently coordinating on the target products and the period of increase.
In addition, Rosen, a large convenience store chain, has raised the prices of about 50 items, including sandwiches and rice balls, since early March, from about 2% to 14% of the price including consumption tax.
Turkey's inflation exceeded 61% in March
The catering industry is afraid of a wave of closures
According to CCTV News, Turkey's inflation rate exceeded 61% in March, driven by the conflict between Russia and Ukraine and soaring energy prices, once again setting a new high for inflation in nearly 20 years. The local catering industry is under great pressure due to rising operating costs and a lower willingness to consume at high prices. Industry insiders predict that the Turkish catering industry is likely to usher in a new round of closures.
Image source: CCTV News
Even on weekends, Istanbul's bustling tourist dining district remains deserted. Fat, the owner of a restaurant in Istanbul, said that the cost of electricity and water, natural gas, food raw materials, none of them are not rising. The usual monthly expenses are 15,000 lira (about 6,000 yuan), but last month they paid about 29,000 to 31,000 lira (about 12,000 to 13,000 yuan), almost doubling.
In order to save money, the boss did everything himself, shortening the working hours of employees to reduce salaries, and postponing restaurant opening hours. But another conundrum is that people's willingness to spend at high prices has decreased, and restaurant turnover has fallen by at least 30%. Fat said that without additional cash flow, the restaurant can last for a maximum of 4 months because rents in the area are very high.
According to the latest data released by the Turkish Statistical Office, the Turkish Consumer Price Index rose by 61% year-on-year in March, the highest level since March 2002. Among them, food prices rose by 70% year-on-year, transportation costs rose by 99%, and energy costs rose by nearly 103%. Analysts pointed out that nearly 80% of Turkey's domestic catering industry is suffering from high prices.
Demiras, president of the Turkish Restaurant and Entertainment Association, said restaurants that would close in more than single digits over the next six months would be in more than double digits. This means that if you can't find a way to keep costs down to stay profitable, or at least not lose money, 10% to 20% of restaurants will fail.
In fact, not only the catering industry, but also several industries in Turkey are affected by high inflation. The outbreak of the Russian-Ukrainian conflict triggered a surge in global commodity prices, hitting Turkey, a country that relies on imports for almost all oil and gas supplies, even harder. Analysts believe that high inflationary pressures in Turkey will only grow in the future.
Foreign media: Inflation in the euro area reached a new high in March
2022 or a year of stagflation in Europe
According to a reference news report quoted by Reuters frankfurt, inflation in the euro area rose sharply to 7.5% in March, reaching a record high again. With inflation expected to peak for months, this has increased pressure on the ECB. Europe demands curbing runaway prices, despite a sharp slowdown in economic growth.
Eurostat reported on Friday that eurozone consumer price harmonized index growth jumped to 7.5 percent in March from 5.9 percent in February, well above expectations of 6.6 percent, and the situation in Ukraine and sanctions against Russia pushed fuel and gas prices to new highs.
All of this has put the ECB in a difficult policy dilemma. The ECB's main task is to keep inflation at 2 percent, but tightening policy now could bring down an economy already plagued by the Russian-Ukrainian conflict and covid-19.
According to the French "Echo" website reported on March 30, before the Russian-Ukrainian conflict, inflation was already a problem faced by Europeans. The onset of conflict has only accelerated the evolution of events. In March, consumer prices in Spain and Belgium rose by 9.8 percent and 8.3 percent year-on-year, respectively, while in Germany, consumer prices rose by 7.3 percent, the highest increase since the autumn of 1981.
This situation is not expected to change in the short term. Inflation is likely to continue to climb in the coming months. Goldman Sachs economists expect consumer prices to rise 8.9 percent year-on-year in July. They see it as the peak, while consumer prices in the eurozone will rise by 7.8 percent in a year. In Germany, the Council of Economic Experts estimates that consumer prices could rise by as much as 9 percent in 2022 if Russia disrupts gas supplies. Other experts do not rule out the possibility of double-digit consumer price increases in Germany this summer.
The report pointed out that EU governments and the European Central Bank are facing a very difficult situation. Interest rate hikes have little impact on raw material prices determined by geopolitical events, while tightening the currency could dampen economic growth. 2022 is likely to be a year of stagflation in Europe, meaning that high inflation and low growth will occur simultaneously.
Editor| Wang Yuelong Wang Jiaqi
Proofreading | Lu Xiangyong
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