From Toothpaste to Tteokbokki... Prices Soar Again at Year-End and New Year

Rising Costs of Ingredients and Labor
Chicken Industry Considers Price Hike
Increased Burden on Working-Class and Middle-Class Households

[Asia Economy Reporter Moon Hyewon] Despite the decline in expected inflation rate (the anticipated consumer price increase over the next year), the perceived price rise at the end of the year remains fierce. Price hikes continue across essential goods such as detergent, shampoo, toothpaste, as well as tteokbokki and coffee. With logistics costs, labor costs, and various raw material prices already increased, voices say that price increases reflecting these costs are inevitable for the time being. As the "price hike rush" that began in earnest at the start of the year is expected to continue through the end of this year and into early next year, consumers’ wallets are expected to become even thinner.

According to the distribution industry on the 27th, LG Household & Health Care will raise prices of eight major daily necessities sold at convenience stores, including detergent, shampoo, toothpaste, and toothbrushes, by up to 18% starting January 1 next year. The item with the largest price increase is Tech powder detergent; the price for 750g will rise from 5,500 won to 6,500 won, an 18% increase. Homestar Mold Remover (750ml) will increase from 5,900 won to 6,900 won, up 17%, and the kitchen detergent Jayeonpong (490ml) will go from 4,000 won to 4,600 won, a 15% increase. The price of 1L of Safran fabric softener will also rise 11.2%, from 4,450 won to 4,960 won.

Earlier, LG Household & Health Care also decided to raise the price of Coca-Cola products sold at convenience stores by 100 won starting January 1 next year. Coca-Cola 350ml and Coca-Cola Zero 355ml will increase from 1,900 won to 2,000 won, and the 1.5L PET bottle will go from 3,800 won to 3,900 won. This is the first price increase for convenience store Coca-Cola products in one year since January 1 of this year.

Dairy products will also see price increases starting January 1 next year. Maeil Dairies will raise prices of 14 types of cup coffee, including "Barista Rules," by 10 to 12.5%. Maeil Dairies had previously raised prices on some products in January and October this year. Namyang Dairy Products’ "Choco Emong" and "Strawberry Emong" convenience store prices will also increase by 18% (200 won), from 1,100 won to 1,300 won starting the same day. Dongwon F&B will raise prices of all cheese products, such as "Denmark Grilled Cheese" and "Sowanamu Slice Cheese," by around 10%.

Frozen foods will also become more expensive. Haitai Confectionery & Foods’ hometown dumplings (415g) sold at convenience stores will increase from 4,800 won to 5,300 won.

Food and beverage and dining franchises have also joined the year-end price hike trend. Ediya Coffee has raised prices on 57 out of 90 beverage items, excluding Americano, by 200 to 700 won since the 22nd. This price increase is the first in four years since 2018. Jaws Tteokbokki raised prices on all menu items by around 1,000 won starting the 21st. Jaws Tteokbokki’s original tteokbokki increased from 3,500 won to 4,500 won, and cheese tteokbokki and rose cream tteokbokki rose from 5,000 won to 6,000 won, each up by 1,000 won.

To make matters worse, chicken prices have risen sharply since the beginning of the year due to increased production costs, and with the recent spread of highly pathogenic avian influenza (AI), the chicken industry is also considering price hikes.

The industry commonly states that price increases are inevitable due to rising costs of various raw materials, logistics, and labor. Additionally, interest rate hikes and high exchange rates have compounded the situation. Even if future inflation forecasts stabilize, the on-site price perception is premature to ease. An industry official said, "Price increases were inevitable due to high raw material costs and high exchange rates," adding, "With global uncertainties such as the Ukraine-Russia war still significant, the situation is expected to remain difficult next year."

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