Tokyo, Japan - The ongoing rise in the price of cooking oil and foodstuffs has caused a sharp uptick in overall food prices. And for consumers trying to tighten the purse strings, more bad news is on the way.

Last month, the price of milk, soy sauce, cooking oil and other food items went up. Some companies are discovering that such price hikes can cause a decline in sales and a reduction in profits as concerns are raised about the adverse effects of a consumption slowdown.

At a supermarket in Shinagawa Ward, Tokyo, many shoppers were frantic to find cheaper food products.

"I'm looking for stores that sell items even at slightly cheaper prices," a 32-year-old woman said. "I can't cut back on the food I buy for my family, so [with the recent price hikes] I'm having difficulty making ends meet."

Another housewife, 43, said: "I'm trying ways [to respond to the price hikes] like reducing the amount of ingredients used in meals for my family. But it's the dishes my children like, such as pasta, that have become more expensive, and this is giving me a real headache."

Meiji Dairies Corp. and two other major dairy companies increased the price of milk by between 3 percent and 7 percent last month for the first time in 30 years.

Yamasa Corp. and Nisshin Oillio Group Ltd. also raised the wholesale price of soy sauce and cooking oil, respectively.

The trend has taken root among nonessential grocery items as well.

Suntory Ltd. and Sapporo Breweries Ltd. recently increased the wholesale price of beer, resulting in a retail price hike of between 3 percent and 5 percent. This move came on the heels of price increases by Kirin Brewery Co. and Asahi Breweries Ltd., meaning that all four major beer companies have now increased their prices.

At a supermarket in Tokyo, the retail price of a liter of milk was marked up by about 10 yen, and beer prices also were higher. A manager of the supermarket said sales had not dipped, but added, "I think many food items are daily necessities, so customers can't immediately cut back their expenses on these items."

Between January and March, the shipping volume of beer and beerlike alcoholic drinks decreased by 2.6 percent from a year earlier. This was the first decline in three years.

Major instant noodle manufacturer Nissin Food Products Ltd.'s sales of its products declined in January and February by more than 10 percent compared with sales in the same months a year earlier. Nisshin raised its recommended retail prices on Jan. 1.

One wholesaler said the volume of a major instant noodle maker's products it handles dived by about 20 percent during the January-March period.

The falling sales are hurting companies' bottom lines. Ajinomoto Co. revised downward its profit forecast at the end of fiscal 2007 to 64 billion yen, a reduction of between 11 billion yen and 13.5 billion yen from the initial forecast.

The company said sales declined considerably after it raised the price of its main product, Hondashi instant bouillon, in September. The food poisonings involving Chinese-made frozen gyoza products contaminated with pesticides also had hurt sales of the company's frozen foods, the company said.

Many small and medium-sized food companies do not have financial foundations solid enough to weather the tough current economic climate.

Naomi Takagi, an analyst at JP Morgan Securities Japan Co., said, "If the price rises of basic materials and ingredients continue for another year or two, some foodmakers will find it difficult to stay in business."

There is more bad news coming for consumers, too: An increasing number of companies dealing in foodstuffs plan to raise their prices this month.

On Thursday, major dairy product manufacturers are set to increase the price of butter and cheese while major flour milling companies plan to raise the price of flour for domestic use.

Yamazaki Baking Co. has decided to raise its bread product prices again on May 16, following a price hike in December.

In addition to foodstuffs, gasoline prices are expected to go up by about 30 yen a liter with the reintroduction of the provisionally raised gasoline tax.

The rise of crude oil prices, meanwhile, has forced power companies and gas companies to raise electricity and gas rates in July.

All these items are commonly used in people's daily lives. The steady increase in prices likely will see many people reduce their consumption of these products.