Korean gov’t dedicates special task force to manage food prices

[Photo by Yonhap]

The South Korean government has commenced work to manage the prices of seven major food items, including instant noodles, bread, and milk, as high inflation eats into the finances of many households.

According to plans announced by the Ministry of Agriculture, Food and Rural Affairs on Sunday, it will establish a task force team and designate an official in charge of overseeing the prices of the seven major items to ensure dedicated price management.

The items, which also include snacks, coffee, sugar, and ice cream, have seen steep price increases recently.

According to data released by Statistics Korea in October, the prices of ice cream soared 15.2 percent from the same month a year ago while milk 14.3 percent.

Bread prices rose by 5.5 percent, and snacks, confectionery, and sugar rose by 10.6 percent. Coffee, tea, and cocoa prices went up by 9.9 percent.

Currently, the agriculture ministry has only one official in charge of processed food prices, while there are individuals responsible for specific agricultural products.

The plan is to increase task force personnel and operate it temporarily until prices stabilize.

“We will immediately launch a special ministry-wide price stability system in which all ministries will prioritize price stability as a policy priority,” said Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho last week.

Food and non-alcoholic beverage prices surged by more than 5 percent in the first 10 months of this year. If the trend continues throughout the remaining months of the year, it will be the first time since 2011 for the surge to surpass 5 percent for three straight years.

The rise in international commodity prices, including crude oil and grains, has pushed up the cost of processed foods. Additionally, extreme temperatures have affected the prices of fruits and vegetables.

Prices of ginger saw the highest increase of 97 percent between January and October, followed by carrots (33.8 percent), onions (21.5 percent), and processed foods such as dressings (29.5 percent), jams (23.9 percent), and cheese (23.1 percent).

Among fruits, tangerines (18.3 percent) and apples (17.2 percent) saw the highest price increases.

The prices of food services also rose significantly during the same period.

Food service prices were 6.4 percent higher than the same period a year ago. Items that are commonly consumed, such as pizza (11.5 percent), hamburgers (9.6 percent), gimbap (8.9 percent), and ramyeon (8.6 percent), saw significant increases.

Food services prices had risen by 7.7 percent last year, marking the highest rate in 30 years since 10.3 percent in 1992.