Processed Food Prices Up 4.6% Last Month... Food and Retail Industries to Focus on Discount Events in July and August

Ministry of Agriculture, Food and Rural Affairs Holds Meeting with Food and Retail Industries on July 4

The government has requested cooperation from the food and retail industries to help stabilize processed food prices in order to ease the burden of consumer prices. In response, the food and retail sectors have decided to focus on holding discount events for processed foods in July and August.

The Ministry of Agriculture, Food and Rural Affairs announced on July 7 that it held a meeting with representatives from the food and retail industries on July 4 to discuss measures for price stabilization, including discount events for processed foods during the summer vacation season.

On the 10th, a coffee sales stand at a large supermarket in Seoul. 2025.06.10

According to the Ministry, the consumer price inflation rate for processed foods in June was 0.3% compared to the previous month and 4.6% compared to the same month last year. Among the items, chocolate, kimchi, and coffee showed particularly high rates of increase.

An official from the Ministry of Agriculture, Food and Rural Affairs stated, "This is analyzed to be due to increased costs for major raw and subsidiary materials, labor, and energy, which have intensified cost pressures on food companies. International prices for products such as cocoa and coffee also remain high." The official added, "However, prices for some raw materials such as palm oil and sugar, as well as exchange rates, have recently stabilized, so it is expected that companies' cost burdens will be partially eased."

To help ease cost pressures on the food industry, the Ministry has applied quota tariffs to imported raw materials such as coffee and cocoa (21 items), exempted value-added tax on coffee and cocoa imports (until December 31), and expanded support for raw material purchasing funds for food companies.

Last week, the Ministry held a meeting with food manufacturers and retailers to discuss ways to ease consumer burdens by stabilizing processed food prices. The industry also agreed on the need to reduce the burden of grocery prices and decided to focus on holding discount events during the summer months of July and August.

This month, food manufacturers and retailers will jointly participate in discount events at large supermarkets and convenience stores, focusing on products with high consumer price sensitivity and for which raw material price pressures have eased, such as ramen and bread, as well as products with high summer vacation demand, such as ice cream, juice, and samgyetang. In particular, for kimchi, which has recently seen a high rate of price increase, major kimchi companies (such as Jonggajib and Bibigo) will participate in discount events through online malls, home shopping, and offline channels. After August, the government plans to continue monitoring the situation regarding processed food prices and to maintain consultations with the industry.