In the 'Era of Food Poverty,' High Prices Lead to Skipping Meals and Choosing Near-Expiration Products

Tesco Chairman "Witnessing True Food Poverty for the First Time in a Generation"

On the 15th, citizens are shopping at a large supermarket in Seoul amid ongoing high inflation. Recently, as inflation has emerged worldwide, the cost of living is tightening for ordinary people.
[Image source=Yonhap News]

[Asia Economy Reporter Kang Woo-seok] As inflation (high price phenomenon) sweeps across the globe, all ordinary people, regardless of whether they are in developing or developed countries, are suffering.

According to the Wall Street Journal (WSJ) on the 8th (local time), as prices of daily necessities such as food soar recently, low-income and ordinary people worldwide are tightening their budgets by cutting living expenses.

'Matsentralen Norge,' which operates a food bank in Norway, is reportedly distributing 30% more food than the same period last year when demand increased due to COVID-19.

WSJ also reported that the use of food banks is increasing in the United States.

Additionally, grocery store customers in the U.S. are buying more store-brand private label (PB) products that are cheaper, while purchasing less expensive beef and fish products.

According to a survey conducted by the UK's Office for National Statistics (ONS) in May, about 44% of respondents said they are buying fewer groceries due to high prices.

According to a survey by the UK charity Food Foundation, the number of adults who reported reducing meals or skipping meals increased by about 55% in three months, from 4.7 million in January to 7.3 million in April.

Moreover, the use of charities that provide free food to vulnerable groups has increased compared to the time of the COVID-19 outbreak.

The price situation in the UK is particularly severe. In May, the UK's inflation rate rose 9.1% compared to the same month last year, marking the highest increase in 40 years. The food price inflation rate in the same month reached 8.5%.

According to the Agriculture and Horticulture Development Board (AHDB) in the UK, the price of Cheddar cheese last month rose 59% compared to the same month last year. Another government data shows that milk prices in April increased by about 27% compared to last year.

John Allan, chairman of Tesco, the UK's largest retailer, expressed concern on BBC, saying, "We are witnessing true food poverty for the first time in a generation."

The Russian invasion of Ukraine is cited as a major factor in food inflation. While global supply chains were disrupted by the COVID-19 pandemic, the ongoing Russia-Ukraine war has reduced food supply, and soaring energy prices have increased food manufacturing and transportation costs.

In South Korea, a recent trend has been observed where people try to save living expenses by purchasing relatively inexpensive clearance and defective products or reducing the use of delivery apps that incur delivery fees. In fact, TMON's 'Altteul Shopping,' which sells clearance, stock, near-expiration, and simple change-of-mind products, saw its sales in May increase by 279% compared to the previous month. Sales surged especially in food and daily necessities.

According to IGAWorks' proprietary data analysis solution 'Mobile Index,' the number of users of delivery apps 'Baedal Minjok,' 'Yogiyo,' and 'Coupang Eats' in the fourth week of May decreased by 8.2%, 17.2%, and 25.2%, respectively, compared to the first week of March.

Meanwhile, according to the 'June 2022 Consumer Price Trends' announced by Statistics Korea on the 5th, the domestic consumer price inflation rate last month was 6.0%, marking the highest increase in 23 years and 7 months since November 1998 (6.8%), right after the International Monetary Fund (IMF) foreign exchange crisis.

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