Uniqlo cancels price hikes for socks in Japan as inflation bites

Fast-fashion retailer Uniqlo has called off a planned price increase for its popular socks in Japan, amid growing consumer dissatisfaction with inflation. The company made the decision less than two weeks after announcing the hike, which sparked concerns about its reputation as an affordable brand. Uniqlo's statement revealed that the originally planned increase to ¥390 per pair for a specific type of basic socks has been canceled, and the items will now remain at ¥290 for a single pair or ¥990 for a set of four.

The company cited inflation and a weak yen as the reasons for the change of heart. However, Uniqlo will still implement price hikes for other selected items, such as jackets and pants, from November due to the same factors. The announcement comes as Japanese households grapple with rising costs for everyday essentials, from eggs to transportation, marking a dramatic departure from the decades-long deflation that plagued the nation.

Many businesses that once boasted low prices now face the necessity of raising them. Japanese consumer prices increased by 2.1% in September, and the Bank of Japan is expected to confirm that underlying inflation has reached the 2.0% target. Prime Minister Sanae Takaichi has made combating inflation one of her top priorities.