Fish cake prices also soared... Olive oil and canned tuna processed foods 'High High'

20 out of 34 Items Increased This Year
Government Focused Management on Edible Oil and Milk Also Up

The actual purchase prices of processed foods that consumers frequently buy are rising sharply. Although the government is taking measures to stabilize prices, it is insufficient to reduce the burden on consumers' shopping baskets. With the recent increase in overseas raw material prices and the conclusion of the general election, which had been a factor suppressing price hikes in the first quarter, the food industry's price increase movements are expected to intensify further.

According to an analysis of price trends for frequently consumed processed foods by the Korea Consumer Agency on the 14th, among 34 items as of last month, the average prices of 20 items rose compared to January.

Looking at the items with price increases, fish cake (100g) recorded the highest increase rate, rising 13.4% from an average of 947 won in January to 1,074 won last month. During the same period, canned tuna (100g) rose 11.1% from 2,070 won to 2,300 won, and soy sauce (100㎖) increased 10.2% from 782 won to 862 won, both showing double-digit price increases. Soup (6.6%) and cereal (4.6%) also showed increases exceeding last year's annual consumer price inflation rate (3.6%).

Items that the government has been focusing on to alleviate the price burden on low-income households were no exception to the rising price trend. Previously, the Consumer Agency announced plans to closely monitor the prices of seven major daily necessities?milk, ramen, eggs, flour, sugar, cooking oil, and toilet paper?reflecting the Ministry of Agriculture, Food and Rural Affairs' key management items, and to conduct investigations if irrational price hikes are suspected.

Among the focused management items, the price of cooking oil (100㎖) notably rose 6.6%, from 957 won in January to 1,020 won last month. Besides cooking oil, milk (100㎖) prices increased 6.5%, from 394 won in January to 420 won in April, and prices of sugar (2.2%), flour (0.9%), and toilet paper (0.2%) also rose. Conversely, prices of eggs (-8.0%) and ramen (-0.6%) declined during the same period.

In particular, cooking oil prices have been affected domestically due to the recent surge in international olive oil prices. According to the International Monetary Fund (IMF), the international olive oil price in the first quarter of this year reached $10,088 per ton, surpassing $10,000 per ton for the first time on a quarterly basis. Compared to $5,926 per ton in the first quarter of last year, this represents an approximately 70% increase.

With the general election, which had suppressed price increases until last month, now concluded and the sharp rise in olive oil prices, major food companies are expected to intensify their efforts to raise processed food prices citing raw material cost increases. Earlier this month, CJ CheilJedang and Sempio raised the prices of olive oil products sold in large supermarkets by more than 30%. Sajodairim is also reported to have notified that it will raise olive oil product prices by an average of 30% starting from the 16th, and Dongwon F&B will increase olive oil prices by 30% within this month.

Due to the surge in olive oil prices, concerns about price increases for indirect items that use large amounts of olive oil, such as chicken, are also expected to grow. However, the industry maintains that many companies use sunflower seed oil, so they are not significantly affected by olive oil price fluctuations. BBQ, which has emphasized olive oil chicken, stated that since last year, due to the burden of olive oil prices, it has been using sunflower seed oil for half of its supply and plans to minimize price increases as much as possible.

Meanwhile, among frequently consumed processed foods, 13 items saw their average prices in April fall compared to January, including gochujang (-12.7%), eggs (-8.0%), cola (-7.2%), instant porridge (-6.2%), and curry (-4.3%). Bottled water was the only item among the surveyed products with no change in average price.