Korea’s food prices stay OECD’s second highest, despite overall lower cost of living

Korea's food and nonalcoholic beverage prices, adjusted for purchasing power, ranked among the highest in the Organisation for Economic Cooperation and Development (OECD) for a third straight year.

Korea ranked second among the OECD's 38 member countries in food prices, trailing only Switzerland, which posted an index of 147, according to 2024 price level statistics based on the OECD's purchasing power parity data. Korea posted an index of 146, which is 46 percent higher than the OECD average of 100. 

Purchasing power parity is a measure that compares relative price levels across countries by accounting for each country's purchasing power.

Japan's index stood at 121, the United States at 107, France at 100, Germany at 95.2 and the Britain at 91.4. 

Korea's food prices have remained among the highest in the OECD for the past three years. In 2022, the country's price index of 152 placed it in a tie for second with Switzerland, behind Israel's 155. In 2023, Korea's index of 150 pushed it past Switzerland into first place. The index then eased slightly to 146, but Korea again ranked second, behind Switzerland.

Korea's clothing and footwear price index stood at 115 and its education cost index at 108, both above the OECD average as well. 

By contrast, Korea's household final consumption price index, which reflects the full range of consumer spending categories, stood at 78, below the OECD average, ranking 23rd among member countries.

This is attributed to the fact that while food and beverage prices are high, prices in other consumption categories remain below the OECD average, including housing, transportation, leisure and culture and food and accommodation services.

BY JEONG JAE-HONG [[email protected]]