[Report] "One mountain after another. It's worrisome" Short Chuseok amid high inflation... Traditional market merchants sigh

Consumer Price Inflation Rate in the 6% Range for Two Consecutive Months
Chuseok Ancestral Table Costs Up 6.4% Compared to Last Year
Concerns Raised by Traditional Market Merchants

On the morning of the 30th, citizens are preparing for Chuseok at a traditional market in Eunpyeong-gu, Seoul. Most of the merchants met that day expressed difficulties due to rising prices caused by increases in raw material costs.
Photo by Jeongwan Kim kjw106@asiae.co.kr

[Asia Economy Reporter Kim Jung-wan] "I'm worried about this Chuseok because of the rising prices. Even though social distancing has ended, it's one challenge after another."

At around 11:20 a.m. on the 30th, ten days before the Chuseok holiday, Kim (in his 50s), a Jeon (Korean pancake) vendor at a traditional market in Eunpyeong-gu, Seoul, expressed great concern about this Chuseok as well. Kim sighed, saying, "Even without social distancing, prices have kept rising. Flour, eggs, and cooking oil have all become extremely expensive, so the cost of ingredients is much higher than before." He added, "Since everything is expensive these days, customers try to save money, so we can't just raise prices recklessly."

Although this Chuseok comes after the end of social distancing, soaring prices and a short holiday period have led some citizens to plan a simpler celebration. The consumer price inflation rate has remained in the 6% range for two consecutive months, and the cost of Charye (ancestral rite) table items has also increased compared to last year. Traditional market merchants are increasingly worried ahead of Chuseok.

Compared to last year, the cost of the Charye table has risen by 6.4%. According to the Korea Price Association's survey conducted from the 26th to 29th at eight traditional markets in Seoul, Incheon, Busan, Daegu, Gwangju, and Daejeon, the average price of 29 Charye items for a family of four was 277,940 KRW. This is a 6.4% increase from last year's survey (261,270 KRW), which is attributed to the recent sharp rise in major agricultural product prices. Among the 29 items surveyed, prices of 21 items increased, while 7 items decreased.

Due to worsening weather conditions such as heavy rain and heatwaves, the price increase of vegetables was particularly noticeable. A bunch of spinach rose 23.1% compared to the same period last year to 7,080 KRW, zucchini prices increased by 24.6% to 2,580 KRW, and a bunch of green onions rose 12.8% to 2,730 KRW. Imported seafood, mainly traded in U.S. dollars, also saw price increases due to the strong dollar. Flatfish (buse) rose 10.5% to 5,250 KRW, and frozen pollack (dongtaepo) increased 7.4% to 11,750 KRW.

Citizens who came to shop also sighed deeply due to the high inflation situation. Photo by Jeongwan Kim kjw106@asiae.co.kr

Because of this situation, the worries of traditional market merchants have deepened. Park (58), a vegetable vendor, said, "After the heavy rain, we had no choice but to raise prices on wild greens and green onions," sighing, "Even though prices have gone up, there isn't much profit left." A citizen choosing goods in front of a seafood stall said, "The prices of hairtail and croaker have risen too much," adding, "I'm spending more money on groceries today than I expected."

Citizens visiting the market hesitated to purchase after seeing the prices. Han (53), who lingered in front of a fruit stall for a long time, said, "I'm wondering if I should reduce the variety of fruits I usually put on the table." He added, "While shopping, I’m calculating the cost of the Charye table, but this year, because fruit and fish prices are high, I don't think I can prepare it like before."

Some people planned to have a simple Chuseok due to the burden of rising food prices and the short holiday. Jo (46), who was choosing side dishes in front of a banchan (side dish) store, said, "This year, the holiday isn't long, and my family decided to prepare the table by buying side dishes from the store," adding, "Prices keep rising day by day, so it's cheaper than buying ingredients and preparing everything ourselves."

Some citizens also stated that they would spend Chuseok simply due to the economic recession. Photo by Jeongwan Kim kjw106@asiae.co.kr

Meanwhile, attention is focused on whether the consumer price inflation rate, which recorded 6% in June and July, will continue through August. According to Statistics Korea, the consumer price index last month was 108.74 (2020=100), a sharp 6.3% increase compared to the same month last year. The consumer price inflation rate rose to 4.1% in March this year, then to 5.4% in May, and 6.0% in June, showing a continuous upward trend. According to related government agencies, Statistics Korea will announce the consumer price trends for August on the 2nd of next month.

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