"Everything but Salaries is Rising"... Price Hikes Even on 'Commoners' Foods' Like Hamburgers and Ramyeon

Industry: "Price Increases Inevitable Due to Rising Raw Material, Logistics, and Labor Costs"
Concerns Over 'Milkflation' Next Month
9 Out of 10 Office Workers Find Lunch Prices Burdensome
"Consumer Prices to Peak in September and October, Then Gradually Stabilize"

As food prices, including ramen, rise, the burden of food expenses on ordinary people is increasing. The photo shows a ramen display at a large supermarket in Seoul on May 16. [Image source=Yonhap News]

[Asia Economy Reporter Park Hyun-joo] Prices of representative "common people's foods" such as hamburgers and ramen have been rising one after another, increasing the sighs of ordinary people. There is a growing expectation that consumer prices will remain high for the time being.

Ramen, a staple food for the public, is known to be preparing for a price increase. Nongshim will raise the price of Shin Ramyun by 10.9% starting from the 15th, and will increase the ex-factory prices of major ramen and snack products by an average of 11.3% and 5.7%, respectively. Paldo will also raise the prices of ramen products such as Paldo Bibimmyun by an average of 9.8% starting from the 1st of next month. Other companies such as Ottogi and Samyang Foods are also expected to join the ramen price hike trend.

The price of hamburgers, once considered an "affordable meal," has also been raised more than twice in half a year. McDonald's Korea raised prices on 30 menu items in February and implemented an additional increase about six months later. Burger King, which raised prices on 33 products by an average of 2.9% in January, further increased prices on 46 products by an average of 4.5% on July 29. Lotteria also raised prices on about 60 products by an average of 4.1% last December and further increased prices on 81 items by an average of 5.5% in June.

Hamburger franchise companies that had promoted "affordable prices" also raised prices. Last month, No Brand Burger raised prices on about 40 items by an average of 5.5%, and Mom's Touch also adjusted prices upward on 50 menu items.

The food industry stated that the price increases were inevitable due to rising costs of raw materials, logistics, and labor. Additionally, as domestic raw milk prices rise, there is a possibility of "milkflation" (milk + inflation), where prices of bread, ice cream, and other products made with milk, cheese, and butter also increase.

On July 28th, a citizen was seen carrying fast food while walking in Myeongdong, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Ordinary people are complaining about the burden of food expenses as food prices rise. As the lunch expenses of office workers increase, a new term "lunchflation" (lunch + inflation) has emerged. Recently, HR tech company Incruit conducted a survey of 1,004 office workers, and more than 9 out of 10 (95.5%) responded that they feel burdened by lunch costs. Among them, 56% said lunch expenses are very burdensome, exceeding the majority. Last month, food prices rose 8.4% compared to a year ago, marking the highest increase in 13 years and 4 months since April 2009 (8.5%).

Meanwhile, consumer prices are expected to continue a high rise of 5-6% for the time being. The Bank of Korea stated at a price situation review meeting on the 2nd, "The core inflation rate has somewhat expanded its upward trend, mainly in personal service items such as dining out, as demand-side inflationary pressures continue," adding, "There is still high uncertainty regarding the future inflation outlook due to factors such as the development of the Ukraine situation, international oil price trends, and weather conditions."

Consumer prices are expected to peak in September and October and then gradually stabilize. On the 7th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said at a press club discussion on future inflation prospects, "I think consumer prices will probably reach their peak around September, or at the latest October." He added, "After that, although the level will remain somewhat high, it will show a gradual stabilization trend," emphasizing, "We plan to take all possible measures to establish price stability."

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