Biz failures linked to higher prices top record

TOKYO (Jiji Press) — The number of corporate bankruptcies in Japan blamed on higher prices totaled 150 in the first eight months of this year, surpassing the previous annual record of 138 marked in 2021, credit research company Teikoku Databank Ltd. said Thursday.

Soaring crude oil and materials costs dealt an especially heavy blow to smaller companies that had already been exhausted by the COVID-19 pandemic, according to Teikoku Databank.

Hit hard by rising fuel prices, the transportation industry had the largest number of bankruptcies linked to higher prices, at 42.

The construction industry came in second, at 19, due to soaring materials costs. The food and beverage sector came in third, at 13, as the yen’s rapid depreciation further raised costs of importing raw materials.

In August alone, business failures related to higher prices came to 34, hitting a record high for a single month for the second straight month.