The price of food and beverages in Korea, reflecting real purchasing power, has been found to be the second highest among OECD countries. The government has started to prepare measures to stabilize what citizens actually feel as the 'perceived price'.
According to the price level statistics published on the 15th by the OECD, considering Purchasing Power Parity (PPP), the price level of food and non-alcoholic beverages in Korea was recorded at 147 as of 2023. This is 47% higher than the OECD average (100).
The price level considering PPP is an index created to compare prices between countries by adjusting factors such as economic size and exchange rates on a purchasing power basis. It allows for estimating the perceived price level that citizens of each country experience.
The price level of food and beverages in Korea was the second highest among the 38 OECD countries. The highest was Switzerland (163), often cited as a representative high-cost country in Europe. The prices of food and beverages in the United States (94), Japan (126), the United Kingdom (89), and Germany (107) were lower than those in Korea.
The index for clothing and footwear in Korea was also significantly above the OECD average at 137. The price of education (110) also exceeded the average.
However, the household final consumption (HFC) price, which encompasses various items, was below average at 85. Prices for education, culture and leisure, dining out, and housing were also lower than the average. While overall prices are not high, it indicates that essentials for basic living, such as food and clothing, are relatively expensive.
The consumer price index for the first quarter of this year, announced by the Statistics Korea, is 116.30. Among this, the living cost index, which consists of 144 items with high purchase frequency and expenditure proportion, is 119.09, and the food price index is 125.04. The living and food prices, which are more perceptible, have actually risen more than the overall consumer price inflation.
The government is preparing a multi-ministerial plan for price stability. In particular, it is focusing on 'controlling food prices' for items such as eggs and processed foods, which have recently seen significant price increases. There are discussions about expanding discounts for agricultural, livestock, and fishery products across various distribution channels such as large supermarkets, traditional markets, and online malls. It is also expected that public utility rates managed by central ministries, including electricity, gas, and railways, will be postponed unless increases are unavoidable.