Essential Ingredients See Price Surge: Sugar and Salt Prices Rise by Around 15%

Sugar and salt prices have seen significant increases

Sugar and salt prices have seen significant increases, with sugar prices up by 17.6% and salt prices up by 14.8% from last year. This surge in essential ingredient prices is contributing to rising food and dining costs. Despite government assurances of price stabilization, uncertainties remain.

Sugar and salt are essential ingredients in cooking, but they are now contributing to rising food and dining costs due to their significant price increases. According to the National Statistical Portal (KOSIS), the consumer price indices for sugar and salt reached 144.56 and 174.73, respectively, in the past month. This represents a 17.6% increase for sugar and a 14.8% increase for salt compared to the same period last year. The rise in the cost of these staples has led to higher prices for foods containing them, such as bread, biscuits, cakes, cereals, and pies.

In the past month, dining costs also rose by 2.9%, surpassing the overall consumer price inflation rate of 2.6%. Within this category, the price of kimchi stew with rice increased by 4.1%, tteokbokki (spicy rice cakes) by 5.9%, and beverages by 0.4%.

In response to these price hikes, the government has taken measures to stabilize prices. The Ministry of Oceans and Fisheries has released stockpiled sea salt, and the Ministry of Agriculture, Food and Rural Affairs has negotiated with the sugar industry to lower prices.

However, several factors could lead to further price increases for sugar and salt. For instance, the production area for sea salt has decreased, with 837 salt farms operating as of January, down 12.7% from 959 in August 2020. Additionally, there is only one domestic supplier of refined salt, limiting the government's ability to induce price reductions.

Despite a 4.0% reduction in B2B sugar prices by the leading company CJ CheilJedang, the global sugar price index rose by 0.7% last month, reaching 120.2. This index reflects future prices and may take 3-6 months to impact consumer prices. As a result, the sugar industry's hesitation to adjust prices could continue in the medium term.

Eun-hee Lee, a professor of consumer studies at Inha University, noted, "The persistent rise in sugar and salt prices poses a burden not only to general consumers but also to food companies that use these ingredients extensively. The government needs to continually monitor production and supply conditions for sugar and salt and proactively address factors contributing to price increases."

The significant price increases for sugar and salt are impacting food costs and causing concern among consumers and food businesses alike. Despite government efforts to stabilize prices, ongoing monitoring and proactive measures will be crucial to managing these price fluctuations effectively.