McDonald’s chain stores in Japan will increase the price of about 60% of the products on the menu due to the increase in input prices and fluctuations in the exchange rate between the US dollar and the Japanese yen.
According to Reuters news agency, on September 26, McDonald’s Company in Japan announced an increase in selling prices. This is the company’s second price hike this year. These two price hikes are also the company’s first since 2019 in Japan.
Specifically, because the yen exchange rate has slid to a 24-year low against the dollar, materials imported to Japan have become more expensive accordingly.
The dishes at McDonald’s will increase from 10-30 yen (from 1,600 – 5,000 VND) each from September 30.
After the increase, the price of a Big Mac hamburger will increase from 390 yen (65,000 VND) to 410 yen (equivalent to 2.85 USD or 68,000 VND).
According to the world price index of The Economist magazine, the price of a Big Mac hamburger is 5.15 USD in the US (122,000 VND).
The price difference between the two countries shows that the yen has been undervalued by 45%, last updated in July 2022.
A survey conducted by market research firm Tokyo Shoko Research in September 2022 found that rising costs and the devaluation of the yen caused major restaurants in Japan to raise prices by as much as 60%.
In general, the currencies of many Asia-Pacific countries fell further against the USD in trading in Asia on the morning of September 26.
The Korean won, the Japanese yen, the Indian rupee, and the Chinese yuan all weakened against the dollar.
The US Federal Reserve’s interest rate hikes have boosted the value of the dollar against other currencies in recent months.
Since oil and imports are priced in USD, a stronger USD will increase costs for importers.