Japanese bakery to rise prices

Japan’s Yamazaki Baking Co.will raise prices on its core products by an average of 6 per cent in July, reflecting the soaring cost of flour.

The price hike, the first since May 2008, covers roughly 250 of the company’s best-selling products out of a lineup of more than 1,000.

The price of bread items will increase roughly 7 per cent, with confections seeing a 5 per cent rise.

The government, which effectively sets the price of imported wheat, passed on an 18 per cent increase to millers last month in light of a surge in international commodity markets.

Flour millers have announced plans to raise wholesale prices by more than 10 per cent beginning with June 20 shipments.

The move by Yamazaki, a leading domestic user of flour, is likely to prompt industry counterparts to follow suit and may even influence decisions by noodle makers and others.