Why Do Food and Beverage Prices in South Korea Rank So High Among OECD Countries?
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Synopsis
South Korea's food and beverage prices have soared, ranking second highest among OECD nations. This alarming trend raises concerns for consumers and the government, prompting measures to stabilize rising costs. As the nation grapples with inflation and seasonal heat waves, the impact on daily living becomes increasingly significant.
Key Takeaways
- South Korea's food and beverage prices are the second highest in the OECD.
- The price index is 47% above the OECD average.
- Government measures are underway to stabilize consumer prices.
- Heatwave advisories have been issued in Gyeonggi Province.
- Inflation has increased consumer prices by 16% over five years.
Seoul, June 15 (NationPress) Food and beverage prices in South Korea have been reported to be the second highest among the nations of the Organization for Economic Cooperation and Development (OECD), according to data released on Sunday. The food and beverage price index in South Korea reached 147 in 2023, which is 47 percent above the OECD average, as per purchasing power statistics compiled by Yonhap news agency.
This figure ranks South Korea just behind Switzerland, which stands at 163, out of the 38 OECD member countries. For context, the United States has a price index of 94, while Japan and Germany report indices of 126 and 107 respectively.
In the first quarter of this year, South Korea's consumer price index was reported at 116.03, demonstrating a 16 percent increase over the last five years, according to Statistics Korea.
The index for essential goods—covering 144 items related to daily living, like food, clothing, and housing—was noted at 119.09 for the first quarter, with food prices alone at 125.04.
In response to soaring prices, the Seoul government is devising comprehensive measures aimed at stabilizing consumer prices, particularly targeting the rising costs of eggs and processed foods.
Additionally, the first heat wave advisory of the season was issued on Sunday for the inland regions of Gyeonggi Province surrounding Seoul. The Korea Meteorological Administration announced the advisory for areas such as Pocheon, Gapyeong, Paju, Anseong, and Yeoju, effective from 9 a.m. A heat wave advisory is triggered when temperatures are expected to stay at 33°C or higher for two consecutive days.
This year’s initial heat wave advisory was issued five days later than in 2022, where the first alert was set on June 10 for various parts of the Gyeongsang regions.
Point of View
It's critical to highlight that rising food and beverage prices in South Korea present a real challenge for consumers. While the government is taking steps to address this issue, the ongoing inflation affects daily life and economic stability. Balancing price control measures with market dynamics is vital for ensuring the well-being of citizens.
NationPress
15/06/2025
Frequently Asked Questions
What is the current food and beverage price index in South Korea?
The food and beverage price index in South Korea is currently at 147 for 2023.
How does South Korea's food prices compare to other OECD countries?
South Korea ranks second among OECD countries for food and beverage prices, only behind Switzerland, which has an index of 163.
What measures is the government taking to stabilize prices?
The Seoul government is implementing comprehensive measures aimed at stabilizing consumer prices, focusing particularly on the costs of eggs and processed foods.
What was the consumer price index in South Korea this year?
The consumer price index in South Korea for the first quarter of this year was reported at 116.03.
What regions were affected by the recent heatwave advisory?
The heatwave advisory was issued for the inland areas of Gyeonggi Province, including Pocheon, Gapyeong, Paju, Anseong, and Yeoju.
