Firms' Recent Price-Setting Stance: Evidence from the Tankan

Shuichiro Ikeda, Takuji Kondo, Yoshiyuki Kurachi, Taichi Matsuda and Tomoyuki Yagi
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Shuichiro Ikeda: Bank of Japan
Takuji Kondo: Bank of Japan
Taichi Matsuda: Bank of Japan
Tomoyuki Yagi: Bank of Japan

No 23-E-2, Bank of Japan Review Series from Bank of Japan

Abstract: With raw material costs increasing significantly due to high commodity prices and the yen's depreciation, firms' moves to pass on the rise in costs to selling prices have become widespread. This paper examines this recent price-setting stance of firms using microdata from the Tankan surveys. The analysis finds that in the current phase, moves to raise selling prices have been spreading even among business types and firms that were cautious about changing such prices. In addition, the results suggest the possibility that, with many firms facing significant cost increases, firms' price-setting stance has been affected by a situation in which their competitors are also forced to consider raising prices.

Keywords: Cost-Push Pressures; Pass-Through; Consumer Prices; Strategic Complementarity (search for similar items in EconPapers)
JEL-codes: D22 E30 E31 (search for similar items in EconPapers)
Date: 2023-02-02
New Economics Papers: this item is included in nep-com
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Citations: View citations in EconPapers (1)

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