The Biggest Challenge Is Making a Living... 9 out of 10 Expect Consumer Prices to Rise in 2024

- Nationwide Survey on Consumer Price Perception of 1,000 Men and Women Conducted
- 90% Expect Prices to Rise in 2024

The Seoul Consumer Public Interest Network announced that it conducted a survey on consumer price perceptions targeting 1,000 men and women aged 20 to 59 in five metropolitan cities last December. The survey results revealed that consumers placed a high consumption proportion on daily necessities such as groceries, dining out, and alcohol/tobacco, and these items were also the ones they most wished would not increase in price in 2024, showing that issues related to food and living expenses are of greatest concern.

According to the survey results, 90% of respondents expected prices to rise in 2024. The main cause was identified as the surge in raw material costs (59.7%), followed by government price policies (56.0%), international situations such as wars (50.7%), and rising labor costs (44.5%). This indicates that consumers anticipate price increases due to multiple complex reasons. Notably, 61.9% of respondents in their 30s and 61.4% of low-income groups selected ‘government price policies’ as the reason for expected price increases, showing a relatively higher proportion compared to other age and income groups.

Furthermore, 64.1% of respondents said they would reduce consumption in 2024 if prices rise, which was the highest response, while only 34.7% said consumption would remain similar, accounting for about one-third. Among those who said they would reduce consumption, the proportion increased with age, and 68.4% of households with a monthly average income of 3.7 million won or less responded this way, indicating that low-income and older age groups have a weakened consumption sentiment due to expected price increases.

The daily necessities with the highest consumption proportions (multiple selections allowed among five items) were ranked as follows: 1st groceries (97.7%), 2nd dining out (69.6%), and 3rd transportation (62.5%). The items consumers most wished would not increase in price in 2024 were the same: 1st groceries (88.0%), 2nd transportation (46.9%), 3rd dining out (42.2%), 4th manufactured goods (37.2%), and 5th alcohol and tobacco (32.9%). This shows that consumers are concerned about price increases in essential daily goods in 2024.

Kim Tae-min, attorney and representative of the Seoul Consumer Public Interest Network, stated, “Through this survey, we identified that consumers’ consumption sentiment is shrinking due to expected price increases in 2024, and that low-income and older age groups are particularly anxious about price increases in essential daily goods.” He added, “Through the Seoul Consumer Public Interest Network, we will listen carefully to even small consumer issues to identify anxiety factors that undermine consumption sentiment, effectively convey consumers’ voices to the government and institutions, and demand policy revisions and legislative amendments to contribute to price stabilization.”