"Dad, why haven't you bought ice cream lately?"... Inflation rate exceeds 10%

Ice Cream Prices Four Times Higher Than Overall Inflation Rate
Prices Rise Due to Increased Raw Material Costs and Labor Expenses
Ramen, Snack, and Bread Price Inflation Rates Decline Compared to Previous Month

As the recent heatwave continues, the number of consumers seeking ice cream has increased, and the ice cream price inflation rate has surpassed the 10% mark.

[Image source=Yonhap News]

According to the National Statistical Portal of Statistics Korea on the 7th, the consumer price index for ice cream in July was 118.99, up 10.7% compared to the same month last year. This is more than four times the overall inflation rate of 2.3%.

The ice cream price inflation rate was 13.7% in March, the highest in 14 years since May 2009 (14.3%) during the global financial crisis. It seemed to slow down to 10.5% in April and 5.9% in May, but rose sharply again to 9.4% in June.

The reasons for the rise in ice cream prices are identified as consecutive increases in ▲raw materials and parts prices ▲labor costs ▲logistics costs ▲electricity and gas charges. In particular, prices of raw milk and sugar, essential for ice cream production, have surged rapidly, leading ice cream manufacturers to state that price increases are inevitable.

Photo by Kang Jin-hyung

On the other hand, following government recommendations, major ramen, confectionery, and bakery industries have joined the wave of price reductions, resulting in a slowdown in the inflation rates of ramen, bread, and snacks compared to the previous month.

Last month, the ramen price inflation rate was 10.0%, down 3.4 percentage points from the previous month, and bread was 8.1%, down 3.4 percentage points. The snack confectionery price inflation rate also recorded 8.1%, down 2.4 percentage points.

Last month, major ramen companies such as Nongshim, Samyang Foods, Ottogi, and Paldo lowered their product prices by an average of 4-5%. Lotte Wellfood and Haitai Confectionery reduced prices on some snack products, and SPC and Paris Baguette adjusted bread product prices downward by about 5% on average.