Why raising prices in Japan amid ‘insanely high’ inflation backfires on firms

When Japan’s “symbol of affordability” Uniqlo decided to increase the price of its basic socks last month, it sparked a backlash before the clothing titan made an immediate U-turn.

That came after Italian-style family restaurant chain Saizeriya issued an almost grovelling apology as it decided to add 20 yen (US$0.13) to the price of its trademark Milanese Doria, lamenting its “lack of effort”.

The very public angst, including in one of the world’s most recognisable clothing brands, highlights...