"After the Holidays, Worries About Prices Return"... Skyrocketing Vegetable Prices Expected to Rise Further After Chuseok

Continued Inflation... Vegetable Prices Keep Rising
Expected to Increase More Due to Weather Effects Like Hinnamnor
Processed Foods Also Rising... Ramen Industry Announces Price Hike

On the 31st, workers are sorting napa cabbages at Garak Market in Songpa-gu, Seoul, ahead of the Chuseok holiday. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Song Seung-yoon] The all-around price increases are expected to continue even after Chuseok. In particular, due to worsening weather conditions such as heatwaves and heavy rains that began early this year, the upward trend in vegetable prices is also expected to persist.

According to the Korea Rural Economic Institute on the 11th, vegetable prices this month are expected to rise compared to the same month last year due to a decrease in the shipment volume of major agricultural products. The institute forecasted that the wholesale price of Cheongyang green chili peppers will be 48,000 KRW per 10 kg this month, which is 89% higher than 25,400 KRW in the same month last year. For cucumber-flavored chili peppers, the price is expected to rise 10.2% to 40,000 KRW per 10 kg from 36,300 KRW last year. Red paprika is also expected to see a 46.5% increase in wholesale price per 5 kg due to reduced shipment volume, reaching 40,000 KRW compared to last year.

The decrease in production volume was influenced by reduced cultivation area as well as pest and disease damage. However, the impact of Typhoon No. 11 'Hinnamnor' has not been reflected in these figures, so actual prices may exceed the forecast.

Processed food prices are also rising one after another. The price increase for ramen has already been announced. Earlier, Nongshim, the market leader in ramen, announced that starting from the 15th, it will raise the wholesale prices of major ramen products by an average of 11.3% for the first time in about a year. The price increase rates by product are 10.9% for Shin Ramyun, 9.9% for Neoguri, and 13.8% for Chapagetti.

Paldo will also raise prices of 12 ramen brands by an average of 9.8% starting from the 1st of next month. The main product price increases based on supply cost are 9.8% for Paldo Bibimmyeon, 11.0% for Wang Ttukbaegi, and 9.9% for Teumsae Ramen Red Rice Cake. With rising international grain prices and the soaring won-dollar exchange rate, price increases are expected to continue for the time being across most sectors including confectionery and dining industries.