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

Author

Listed:
  • Shuichiro Ikeda

    (Bank of Japan)

  • Takuji Kondo

    (Bank of Japan)

  • Yoshiyuki Kurachi

    (Bank of Japan)

  • Taichi Matsuda

    (Bank of Japan)

  • Tomoyuki Yagi

    (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.

Suggested Citation

  • Shuichiro Ikeda & Takuji Kondo & Yoshiyuki Kurachi & Taichi Matsuda & Tomoyuki Yagi, 2023. "Firms' Recent Price-Setting Stance: Evidence from the Tankan," Bank of Japan Review Series 23-E-2, Bank of Japan.
    • Handle: RePEc:boj:bojrev:rev23e02
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    More about this item

    Keywords

    Cost-Push Pressures; Pass-Through; Consumer Prices; Strategic Complementarity;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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