'Lower Ramen Prices' in Korea... Italy Says "Lower Pasta Prices"

Global Food Prices Soar, Threatening Ordinary Tables
Italy Pasta Price Up 14% Per 1kg in One Year
"Raw Material Prices Fell, Yet... Possible Collusion"

As the price of pasta, a staple food in Italy, soars, public dissatisfaction has recently intensified, while manufacturers have expressed feelings of unfairness.

On the 21st (local time), the Financial Times (FT) reported that European pasta manufacturers are facing pressure to lower product prices. Recently in Italy, the rate of pasta price increases has surpassed the overall inflation rate, leading to a reported movement of citizens engaging in a 'pasta boycott.'

The Italian consumer organization 'Codacons' recently demanded that regulatory authorities investigate the possibility of price collusion among pasta manufacturers. Additionally, they urged consumers to participate in a kind of 'pasta strike' by boycotting pasta.

According to the media, the price of 1 kg of pasta in Italy rose by 14% year-on-year last month, and by 15.7% in April. This is nearly double the 8% year-on-year increase in Italy's Consumer Price Index (CPI) last month.

Italy is the country that consumes the most pasta worldwide, with an annual per capita consumption of 23 kg. As a result, the annual grocery expenses for a family of four in Italy surged to 7,690 euros (approximately 10.66 million KRW) last year, an increase of nearly 12% compared to the previous year.

Earlier, the Italian government convened an emergency meeting as consumer demands rose due to the sharp increase in pasta prices. However, it decided not to intervene, judging that prices would adjust naturally. Neil Shearing, chief economist at Capital Economics, explained, "Price controls could worsen food inflation by hindering new supply."

On the other hand, consumer groups pointed out that "despite the price of Canadian durum wheat, the main ingredient of pasta, having fallen in 2021, the upward trend in pasta prices has continued," accusing manufacturers of taking excessive profits. Although durum wheat prices have recently risen slightly, they remain more than 40% below their peak.

In response, Italian pasta manufacturers such as Barilla and De Cecco stated that grain prices surged significantly last year due to Russia's invasion of Ukraine and expressed feelings of unfairness. They noted that it takes time for the decline in international wheat prices to be reflected in consumer retail prices.

Giuseppe Ferro, CEO of 'La Molisana,' Italy's fourth-largest pasta manufacturer, said, "Pasta prices remain high because companies are still using wheat stocks purchased at peak prices," adding, "Once these stocks are depleted in three to four months, prices will come down."

Other European countries such as the UK and Germany are also angry about rising pasta prices. As of April, pasta prices in the UK and Germany rose by 27.6% and 21.8% respectively compared to the same period last year.

Meanwhile, on the 18th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho recommended domestic ramen manufacturers lower ramen prices, citing the decline in international wheat prices.

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