Kalguksu, Chicken, and Convenience Store Lunchboxes All on the Rise... Growing 'Lunchflation Complaints'

Lunch Boxes, Tteokbokki, Hamburgers and Other Main Dining Out Menus Rise Over 5%
Dining Out Prices Expected to Continue Rising
Due to Climate Change and Exchange Rate Increases

Office workers are serving themselves lunch at a cafeteria located in the basement of an office building in downtown Seoul. Photo by Yonhap News

As the 'three highs phenomenon' of high inflation, high exchange rates, and high interest rates continues, prices are soaring, intensifying 'lunchflation' (lunch inflation, a sharp rise in lunch prices). From workplace cafeterias favored by office workers to convenience store lunch boxes, prices have risen sharply, increasing the economic burden on consumers.

According to the National Statistical Portal of Statistics Korea on the 13th, the consumer price index for dining out last year was 121.01, up 3.1% from the previous year (117.38). Although the rate of increase was about half of the previous year's (6.0%), it was higher than the overall consumer price index (2.3%). The dining out price index rose by 7.7% in 2022 and 6.0% in 2023, showing an increase of more than 3% for three consecutive years, surpassing the overall consumer price index for 12 years since 2012.

Looking at the price increase rates by major dining out menu items, lunch box prices rose the most at 5.9%, followed by tteokbokki at 5.8%, hamburgers at 5.4%, and gimbap at 5.3%. Kalguksu and chicken (each 4.8%), naengmyeon (4.2%), and pho (4.1%) also recorded high increases in the 4% range. Prices rose mainly for menus frequently chosen by the working class.

Citizens who visited a convenience store in Seoul during lunchtime are eating lunch boxes and ready-to-eat meals.

As the burden of dining out increases, convenience store lunch boxes (up 4.9%) and triangular gimbap (3.7%), known for their good cost-effectiveness (quality relative to price), also rose by 3-4%. Convenience store lunch boxes, included in the consumer price index by item since 2019, showed relatively stable trends with increases of 2.4% in 2020, 0.6% in 2021, and 2.1% in 2022, but the increase accelerated to 5.2% in 2023 and 4.9% last year, raising consumer burdens. Triangular gimbap also showed a growing increase trend with 1.3% in 2022, 2.9% in 2023, and 3.7% last year.

In particular, the price increase rate of workplace cafeterias, mainly used by office workers, was steep. Last year, the cafeteria price rose 6.9% compared to the previous year, marking the highest level since related statistics began in 2001. Since 2021, after COVID-19, prices have risen by more than 4% for four consecutive years, leading to complaints among office workers that cost-effectiveness is declining.

This lunchflation phenomenon is related to the rising prices of major food ingredients due to climate change and other factors. Last year, the price increase rate of agricultural, livestock, and fishery products was 5.9%, more than double the overall consumer price index increase. Fruits rose 16.9%, vegetables 8.1%, and grains 3.3%, while livestock products remained stable with a 0.7% increase.

Lunchflation is expected to continue this year as well. Especially amid the overall inflation trend, the emergency martial law situation and the inauguration of the second administration of U.S. President Donald Trump have caused a sharp rise in the won/dollar exchange rate, making it inevitable for major imported food ingredient prices to rise. Jeong Ji-yeon, Secretary General of the Korea Consumer Federation, told Yonhap News, "Factors affecting food prices such as climate change and exchange rates are becoming increasingly complex and diverse," adding, "If this trend continues, the food price index will keep rising this year."