Ramen Prices Rise at Largest Rate in 12 Years 8 Months... Dining Out Costs Also Soar

Gochujang, Corn Syrup, Vinegar, and Sugar All Increase
Dining Out Price Index Rises Most in 2 Years and 11 Months

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The price of ramen has risen at the largest rate in about 13 years.

Due to the sharp increase in raw material prices, prices of other processed foods such as bread, cooking oil, and salt have also continued to soar.

According to the National Statistical Portal of Statistics Korea on the 7th, the consumer price index for processed foods in October was 109.89 (2015=100), up 3.1% from a year earlier.

The increase last month was the largest in 6 years and 11 months since November 2014 (3.3%).

By item, ramen prices rose 11.0% in one year, marking the largest increase in 12 years and 8 months since February 2009 (14.3%).

This is due to major ramen companies such as Ottogi, Nongshim, Samyang Foods, and Paldo consecutively raising ramen wholesale prices from August, citing increases in raw material costs such as flour and palm oil. Statistics Korea analyzed that the price hikes by companies in August and September this year were reflected in the year-on-year increase rate in October.

Also, influenced by the rise in flour prices, noodle prices increased by 19.4%, and prices of biscuits (6.5%), pasta noodles (6.4%), bread (6.0%), and snack crackers (1.9%) also rose together.

As international grain prices continue to rise, there is a possibility that processed food prices will increase further in the future.

According to the United Nations Food and Agriculture Organization (FAO), the world food price index, which indexes international prices of major food items such as grains, oils, and meat, was recorded at 133.2 points (2014?2016 average=100) in October, up 3.0% from the previous month. In particular, the grain price index rose to 137.1 points, up 3.2% from the previous month, as harvests decreased in major wheat-exporting countries such as Canada, Russia, and the United States.

Salt prices rose 23.9% compared to a year ago, recording the highest increase among processed foods last month.

With the kimchi-making season increasing demand for salt used for pickling napa cabbage, salt prices have shown double-digit growth rates for three consecutive months in August (14.6%), September (18.0%), and October (23.9%), expanding the rate of increase.

Additionally, Makgeolli rose 17.5%, and prices of dressing (14.3%) and cooking oil (12.3%) also increased significantly.

Prices of seasonings such as gochujang (8.3%), starch syrup (8.0%), vinegar (6.2%), sugar (6.0%), and sesame oil (4.8%), as well as beverages like milk (4.3%) and juice (3.9%), also rose together.

Not only grocery prices but also dining-out prices continue to rise.

The dining-out price index last month was 115.10 (2015=100), up 3.2% from a year earlier, marking the largest increase in 2 years and 11 months since November 2018.

Dining-out prices first recorded a 2% increase this year in May (2.1%), then rose further in June (2.3%), July (2.5%), August (2.8%), September (3.1%), and October (3.2%), showing a growing upward trend.

By item, sashimi (dining-out price) rose 8.8%, recording the highest increase, followed by porridge (7.6%), Makgeolli (7.4%), and galbitang (beef rib soup) (6.5%).

Kimbap prices rose 4.8%, and ramen prices bought outside also increased by 3.9% respectively.

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