From Cooking Oil to Food Items... Common People 'Sadden' Over Continuous Price Increases

On the 3rd, cooking oil is displayed at a large supermarket in downtown Seoul. Due to Russia's invasion of Ukraine, international cooking oil prices have soared to their highest level in 10 years. Ukraine was the world's top producer of sunflower seeds used for cooking oil last year. The production scale of rapeseed, the raw material for canola oil, ranks seventh in the world. Photo by Mo Honam munonam@

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[Asia Economy Reporter Song Seung-yoon] Prices of major daily necessities and food items such as fresh food, processed food, and household goods have surged sharply, deepening consumers' worries.

According to the Korea Consumer Agency's Chamgagaek on the 5th, Haepyo Clear and Fresh Cooking Oil (900㎖) was sold between 3,900 and 4,990 won as of the 18th of last month. The average price increased by more than 11% compared to the same month last year, and the lowest price rose by over 34%. Due to the rise in international grain prices, prices of grain-processed foods such as somyeon (thin wheat noodles) and cereal are also on the rise. Since the beginning of this month, CJ CheilJedang's Baeksul Somyeon (900g) is priced at 3,110 won, up 12% from 2,761 won a year ago. Kellogg's Corn Flakes Frosted (600g) rose more than 18% to 6,454 won from 5,450 won a year ago. Imported fruits are also continuously showing an upward trend.

According to the Korea Agro-Fisheries & Food Trade Corporation's Agricultural Product Distribution Information, the price of oranges, a representative imported fruit, was 15,073 won at large supermarkets and traditional markets, up more than 40% from 10,738 won last year, and mango prices were sold at 4,897 won, more than 24% higher than 3,930 won a year ago. The prolonged COVID-19 pandemic has affected local prices, labor costs, and exchange rates, and last year's global abnormal heat wave reduced production volumes. Additionally, the logistics-related costs increased due to Russia's invasion of Ukraine, and customs clearance costs also rose.

Prices of imported agricultural, livestock, and marine products are also rising sharply for similar reasons. According to the Korea Customs Service and Korea Trade-Investment Promotion Agency, the import price index for agricultural and livestock products rose 33.3% and 36.7%, respectively, compared to a year ago. Prices of coffee green beans and milling wheat also increased by 68.1% and 58.4%, respectively.

As raw material prices continue to rise, there is a forecast that a domino effect of price increases in the food and dining industries may occur once again. Most food companies stockpile several months' worth of supplies, so the short-term impact is not significant, but if this trend continues, price hikes will inevitably follow.

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