"When Will It Ever Go Down?" Soaring 'Table Prices' Leave Ordinary People Sighing

Inflation Rate Rises from 23rd to 3rd Among OECD Countries in One Year
Government: "All Available Measures Mobilized Including Expanding Chuseok Seasonal Goods Supply, Early Delivery, and Increasing Imports"
Experts: "Concerns Over Polarization Due to Inflation... Need to Carefully Review Supply Side and Establish Countermeasures"

According to the Consumer Price Trends by Statistics Korea on the 3rd, the Consumer Price Index for July was 107.61 (2015=100), marking a 2.6% increase compared to the same month last year. [Image source=Yonhap News]

[Asia Economy Reporter Kim Soyoung] "I really hope the prices stop rising," "Grocery shopping is scary."

The rapidly rising "table prices" continue to show no signs of slowing down. Coupled with the upcoming Chuseok holiday, ongoing heatwaves, and typhoon damage, additional factors driving price increases are deepening the worries of ordinary citizens.

According to the Organisation for Economic Co-operation and Development (OECD) on the 10th, South Korea's food and beverage (excluding alcoholic beverages) prices in the second quarter of this year rose by 7.3% compared to the same period last year, ranking third highest among 38 OECD member countries after Turkey (18.0%) and Australia (10.6%). This is a stark contrast to the second quarter of last year, when South Korea ranked 26th among OECD countries (then 37 members) with a food price increase rate of 2.5%.

Even looking only at the domestic second quarter, this year's inflation rate hit the highest level in 10 years since 2011 (7.8%). In particular, agricultural, livestock, and fishery product prices jumped 11.9% in the second quarter alone, marking the largest increase in 30 years since 1991 (12.5%). In the July consumer price trends, agricultural, livestock, and fishery products continued their upward trend, rising 9.6% compared to a year earlier.

Egg prices surged by 57.0%, recording the largest increase in four years since July 2017 (64.8%). Other items also saw price hikes, including fruits such as apples (60.7%), pears (52.9%), grapes (14.1%), and watermelons (8.7%); meats such as pork (9.9%), domestic beef (7.7%), and chicken (7.5%); and various vegetables including garlic (45.9%), red pepper powder (34.4%), chives (12.2%), and water dropwort (11.7%).

University student Park (23) said, "I live alone, so I experience the noticeably rising prices every day," adding, "For things that are too expensive to buy, I usually purchase them at a discount when supermarkets offer deals on items nearing their expiration dates."

This is interpreted as being influenced by the spread of avian influenza (AI) at the end of last year, worsening domestic weather conditions such as heatwaves, and rising raw material prices including international grain prices.

After the July consumer price trend announcement, the government stated, "Upward risks remain due to worsening weather conditions such as heatwaves and typhoons, additional rises in international raw material prices including oil, and the impact of the COVID-19 spread, which increases uncertainty," adding, "We will focus policy efforts on stable price management with special vigilance in preparation for the possibility of continued upward pressure on prices."

Amid such frighteningly rising prices, more citizens are already worried about Chuseok prices. Office worker Kim (36) said, "Everything tends to get more expensive during holidays like Chuseok, and under the current circumstances, I think there is nowhere left for prices to rise further," expressing, "I'm starting to get worried."

Moreover, the outbreak of African Swine Fever (ASF) on the 8th at a pig farm in Goseong County, Gangwon Province, is expected to continue driving up table prices. The domestic pork price (based on 100g of pork belly) was 2,584 won as of the 6th, already up 22.3% compared to January. According to Statistics Korea's consumer price trends, pork prices rose 9.9% compared to a year ago last month.

On the 3rd, the fresh vegetable produce section at a large supermarket in downtown Seoul. [Image source=Yonhap News]

The government announced it will import 200 million eggs by next month to stabilize egg prices. Imported eggs, which were mainly supplied to school meal providers or processing companies, will now be supplied to large supermarkets for more than half, allowing consumers to purchase imported eggs directly.

To stabilize livestock product prices during the Chuseok period when gift demand increases, beef supply will be increased to 1.6 times the usual amount, and pork to 1.25 times. Imports will also be expanded by 10% for beef and 5% for pork compared to average years, with plans to simplify import inspection procedures to facilitate this.

On the 3rd, Deputy Prime Minister Hong visited Daejeon Ojeong Agricultural and Marine Wholesale Market and Emart Dunsan branch, stating, "Since agricultural, livestock, and fishery product prices remain high and additional upward risks such as heatwave and typhoon damage exist, we will mobilize all available means such as expanding the supply scale of Chuseok seasonal products, early supply, and increasing import volumes to stabilize prices before Chuseok."

He added, "Especially to minimize heatwave damage, thorough preventive measures, frequent crop condition checks, and shipment timing adjustments should be taken proactively and aggressively."

Experts have called for government-level supply measures to stabilize prices. Professor Lee Eunhee of Inha University's Department of Consumer Studies said, "As the proportion of home-cooked meals has increased due to COVID-19, food price increases will impose an even greater burden on household expenses," expressing concern that "this could lead to greater polarization during the pandemic."

She further suggested, "With Chuseok approaching, supply-side aspects should be thoroughly reviewed, and active measures should be taken for foods expected to see price increases."

This content was produced with the assistance of AI translation services.