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Gov't takes action as rising food prices aggravate inflation's pain

Published: 08 Oct. 2025, 20:31

Visitors look at items at a traditional market in Seoul on Oct. 2. [YONHAP]

Rising food prices over the past five years have made inflation feel more pronounced for consumers, prompting the government to take direct measures.

The consumer price index (CPI) for food and nonalcoholic beverages in September climbed 22.9 percent from the same month in 2020, according to data released by the National Data Office on Wednesday. That figure outpaces the overall CPI increase of 16.2 percent over the same period by about 7 percentage points.

The index for food and nonalcoholic beverages rose 4.4 percent in 2020, 5.9 percent in both 2021 and 2022, 5.5 percent in 2023, and 3.9 percent in 2024, underscoring the sustained pace of price growth.

By item, bread rose 38.5 percent, fruit 35.2 percent, and milk, cheese and eggs 30.7 percent, all jumping more than 30 percent over the five-year span. Rice cakes climbed 25.8 percent and instant noodles 25.3 percent.

Other food categories also saw increases above 20 percent, although slightly below the average for all food products. Miscellaneous groceries increased by 21.4 percent, meat by 21.1 percent, and fish and seafood by 20.0 percent.

Among nonalcoholic beverages, coffee, tea, and cocoa rose by 38.2 percent, while bottled water, soft drinks, fruit juices and vegetable juices climbed by 22.7 percent.

Prices in other everyday categories also spiked. The restaurants and accommodation index increased 24.8 percent, with restaurant service prices — which reflect dining-out costs — rising 25.1 percent, partly due to higher raw material costs.

Shoppers browse apples at the Cheongnyangni fruit and vegetable market in Dongdaemun District, eastern Seoul, on Oct. 3. [NEWS1]

In contrast, prices for housing, water, electricity and fuel rose 16.7 percent, and clothing and footwear 16.2 percent, moving in line with the overall CPI. Categories such as recreation and culture, up 9.5 percent; education, by 8.8 percent; and health, by 6.2 percent, saw relatively modest increases. Telecommunication costs were the only category to fall, dipping 0.2 percent.

Although overall inflation remains within the 2 percent price stability target, many consumers continue to feel squeezed due to persistent increases in food prices. Food products play a central role in daily life, and frequent consumption of the goods makes households more sensitive to price shifts. Elevated prices since the Covid-19 pandemic have also worsened the burden.

The Lee Jae Myung administration has begun taking a more hands-on approach.

“If the government sets clear standards and strictly enforces them, we can rein in markets that act at their own discretion," President Lee said at a Cabinet meeting on Sept. 30.

The Fair Trade Commission building in Sejong is pictured in this file photo from 2018. [YONHAP NEWS TV]

The Fair Trade Commission (FTC) will initiate disciplinary procedures this month in response to allegations of sugar price-fixing by CJ CheilJedang, Samyang, and TS Corporation. Investigations into collusion among wheat flour, egg and processed food manufacturers are also underway.

The FTC is also reviewing a possible price adjustment order — a rarely used mechanism that allows the government to intervene when prices are deemed unfairly set. Although no such order has been executed before due to difficulties in determining a “normal” price level, Lee’s remarks have prompted the agency to reconsider the use of this tool.

The National Tax Service launched tax audits last month on 55 restaurant franchise headquarters, aiming to deter excessive profiteering. While audits do not directly lower prices, they can curb hidden markups through indirect pressure.

Lim Hye-young, director of the price policy division at the Ministry of Economy and Finance, said the government "will combine short-term steps such as supply stabilization, discount programs and tariff relief with structural measures like promoting competition in the food industry and streamlining distribution channels."

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JANG WON-SEOK [[email protected]]