Ice cream prices in Korea soar amid sultry weather

A customer picks up an ice cream at a store in Seoul. [Photo by Park Hyung-ki]

Ice cream prices in South Korea continue to soar as manufacturers raise prices amid strong demand in the summer season.

According to data from Statistics Korea on Monday, the consumer price index for ice cream stood at 118.02 in May, up 5.9 percent from the same month a year ago.

The increase may not appear significant but the surge is relatively high when considering the base effect as the index soared by 13 percent in May last year from a year ago.

Ice cream prices this year have soared by a high level as manufacturers up prices.

Lotte Wellfood Co., Binggrae Co. and Haitai Icecream Co., have been raising prices since February, resulting in a 13.7 percent increase in the consumer price index for the category in March.

It is the highest growth in about 14 years since May 2009 during the global financial crisis when the figure stood at 14.3 percent.

The price of instant noodles rose by 12.3 percent during the same period, snacks and cookies 11.2 percent, pies 11 percent, and bread 10.8 percent.

Frozen dessert manufacturers cite higher prices of raw materials, labor cost, logistics expenses, and higher utility bills as reasons for the continued price hikes.

Lotte Wellfood raised the supply prices of some of its long-time favorites at discount stores and supermarkets in February. Binggrae and its subsidiary, Haitai Icecream also joined.

This month, Lotte Wellfood further increased the supply prices of some frozen desserts by 25 percent. The company initially planned to raise the prices of the products supplied to convenience stores in April, but postponed it until this month.

The soaring ice cream price is in stark contrast to the recent price cuts by other confectionery and snack manufacturers which came in line with the government’s pressure to contain inflation.