Sticker shock in produce aisle leaves shoppers gobsmacked

Economy

Published: 05 Jun. 2022, 07:00

Sticker shock in produce aisle leaves shoppers gobsmacked

Prices of agricultural goods are rising in Korea. People shop for groceries at a discount mart in Seoul on May 25. [NEWS1]

High inflation is hitting the fruit and produce aisles, with prices of melons, cabbages and lettuce soaring at double-digit rates.

"I recall buying a watermelon at the 10,000-won ($8) level last summer, but now it's over 20,000 won," said a 49-year-old customer shopping at a discount mart in Seoul on Wednesday.

"My grocery shopping list is always the same, but the amount of money I spend increases every time. From meats to vegetables and fruits, everything is more expensive now."

According to the Korea Agro-Fisheries & Food Trade Corporation (Kamis) data, watermelons sold at an average price of 21,740 won ($18) on Thursday. This is a 21.2 percent increase from 17,944 won the same period a year earlier. Compared to five years ago, the price is higher by 22.2 percent.

Other fruits and vegetables are also getting more expensive.

Ten oriental melons now sell for over 20,832 won, up 10.9 percent on year.

Cabbages are 39.5 percent more expensive, perilla leaves 25.7 percent and napa cabbages 25.2 percent.

One of the reasons for the soaring prices of these products is the disturbance of production and supply of major agricultural crops due to the hot weather. Surging oil prices and the rising costs of fertilizer and labor are also contributing factors.

On top of that, demand for agricultural goods has recently increased as people started participating in outdoor activities, such as picnics and camping.

Meat prices are also increasing rapidly in Korea.

Meat prices are rapidly increasing in Korea. [NEWS1]

According to data from the Korea Institute for Animal Products Quality Evaluation, 100 grams (0.2 pounds) of Korean pork belly strips sold for 2,953 won on June 1, which is up 17 percent on year.

Rising animal feed costs and the recent spread of the African swine fever (ASF) virus contributed to the rapid increase in the price of pork.

One kilogram of chicken costs 5,968 won, a 10.5 percent increase on year.

To fight inflation, the government proposed 10 cost-of-living initiatives on May 30, but these initiatives are not enough to immediately tame skyrocketing grocery prices.

The initiatives mostly target imported goods, such as by lowering tariffs for imported pork and cooking oil, though the lower won may cancel out any benefits of the waiving of duties.

Prices of imported fruits are rising fast, according to Kamis.

Ten U.S-imported oranges are now 14,759 won, up 41.1 percent on year. Mangoes are 22.4 percent more expensive on year and bananas 8.5 percent.

Consumer prices rose 5.4 percent on year in May, the fastest rate in 14 years, according to Statistics Korea on Friday.

Bank of Korea Gov. Rhee Chang-yong said on Thursday, that "how effective existing monetary policies can be used to solve income polarization and asymmetrical shocks is uncertain."

Experts say the government should come up with shrewder measures.

"Controlling the price of agricultural commodities is difficult as the harvesting period is limited," said Lee Eun-hee, a consumer science professor at Inha University.

"Because prices are rising in almost every sector, a so-called bandwagon effect is taking place as prices are raised even higher than the original price. The government should carefully examine the supply of major agricultural goods that have a big effect on the grocery price and draw up measures accordingly."

BY CHO HYUN-SOOK, IM SOUNG-BIN [cho.jungwoo1@joongang.co.kr]