Food price inflation continues as pantry items and alcohol all see higher prices

Food price inflation continues as pantry items and alcohol all see higher prices [Photo by Lee Seung-hwan]

Food prices continue to soar this year following last year’s rise as overall costs, including employment, logistics and utilities, have all seen a rise recently.

The uptrend in pricing started with soft drinks, according to industry sources on Monday.

Starting Jan. 1, LG H&H Co. raised the price of a 350-milliliter can of Coca-Cola by 5.3 percent to 2,000 won ($1.63) from 1,900 won. It has also priced its Monster Energy drinks at 2,300 won, with a 4.5 percent increase from the earlier 2,200 won.

Lotte Chilsung Beverage Co. increased the price of a 355-ml can of Pepsi by 11.8 percent to 1,900 won from 1,700 won.

Other companies have joined the trend following the Lunar New Year holidays.

The Jeju Special Self-Governing Province Development Co. announced on Wednesday that it will raise the price of its Jeju Samdasoo water by 9.8 percent on average starting next month. Woongjin Foods Co. said it will also increase prices of its twenty or so products by an average of 7 percent next month.

Binggrae Co. will have a 20 percent increase in its ice cream prices. Under the new pricing framework, its popular ice cream bar Melona will be priced at 1,200 won at retail stores, up from 800 won in February last year.

Lotte Confectionery Co. also said Friday that some of its frozen dessert products and confectionaries will have prices raised starting next month.

Among popsicles and ice creams, the price of a Screw Bar and a Jaws Bar will both rise to 600 won from 500 won. Prices of a World Cone, of an I’m MoChi and a Snow Ice will rise to between 1,200 won and 1,000 won.

Lotte’s Margaret cookies will be priced at 3,300 won, from the earlier 3,000 won. A packet of Pepero or a bag of Kokkal Corn will each be priced at 1,700 won, from the current 1,500 won.

Alcohol prices may be raised sometime during the first half of this year following increased taxes on beer and on the traditional alcoholic rice drink makgeolli. [Photo by Kim Ho-young]

Haitai Confectionery and Foods Co. also announced on Friday that it will raise prices of three of its products by 14.8 percent starting Feb. 16.

Bread and cereal products are also seeing some price rises.

The bakery chain Paris Baguette will raise the price of 95 products by an average of 6.6 percent starting Feb. 2. A packet of sliced toast bread will increase to 3,300 won, up from 3,200 won.

Nong Sim Kellogg Co. will increase prices of its cereal products by about a 10 percent.

Fastfood franchise Lotteria has also announced price increases of an average of 5.1 percent. Starting Feb. 2, its Bulgogi Burger and its Shrimp Burger will both be priced at 4,700 won.

Alcohol prices may be raised sometime during the first half of this year following increased taxes on beer and on the traditional alcoholic rice drink makgeolli. According to the Ministry of Economy and Finance, taxes on those alcohol products will each rise by 30.5 won per liter and by 1.5 won per liter, respectively, starting in April. The new tax rates will be applied to beer and makgeolli declared for export/import until March next year. Alcohol companies tend to pass on increases in alcohol taxes to their consumers.

Heineken Korea Inc. has already announced it will raise prices on some of its business-target products, starting Feb. 10.

Vegetables are seeing high prices, due to continued freezing weather.

According to data from the Korea Agro-Fisheries & Food Trade Corp., green onion wholesale prices were at 2,364 won per kilogram as of Friday, a 31.3 percent increase from a year ago.

Bell peppers were priced wholesale at 47,100 won per five kilograms, a 17.9 percent increase. Lettuce prices were up 18.1 percent from a year before, topping out at 26,520 won per four kilograms.