TOKYO: In 2022, Japan will see its first increase in the number of company bankruptcies in three years, indicates a new study by Teikoku Databank.

There were 6,376 bankruptcy filings by businesses nationwide in 2018, up 6% from 2021, according to the report. Those companies' combined debt rose nearly 104% to 2.37 trillion yen (more than $18 billion), but Marelli Holdings, a supplier of auto parts, was responsible for nearly half of that increase. Marelli Holdings filed for bankruptcy protection in June.

According to the report, business was the only sector that did not see an increase in the number of corporate bankruptcies. The service sector, which includes housing, non-governmental organizations, language schools and other businesses, was among the worst affected.

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According to the data, 1,600 service businesses declared bankruptcy last year, a 12.4% increase from 2021. Tohoku saw a 50% increase in bankruptcies over the previous year, as the region with the largest increase.

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In a separate report released last Friday by Tikoku Databank, it was said that the number of bankruptcies due to rising prices will increase 2.3 times in 2022 compared to the previous year.

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Japan's inflation hit a 40-year high in December as a result of rising energy prices. Price growth in Tokyo exceeded expectations last month and reached 4% for the first time since 1982, according to data from the country's Ministry of Internal Affairs.