 The rising prices of food have Koreans paying dramatically more for their beloved “samgyeopsal,” or pork belly cuts. / Korea Times |
Restaurant bills are becoming outrageous and global food prices are hitting new highs as rampant food inflation looks to hit Korean consumers over the next few months.
The price of imported wheat has nearly doubled since last year, while the prices of meat have jumped significantly due to the devastating foot-and-mouth outbreak of the winter, combining to dramatically elevate the cost of eating out.
Food prices have rose inexorably throughout the year and remain some of the biggest contributors to inflation, which has been at least a point above the government’s 3 percent target for five consecutive months through May.
Poor harvests were blamed for food inflation in the earlier part of the year, which has policymakers hopeful that the prices will come down once crops improve after some warmer weather.
However, there is only so much cheaper fruits and vegetables can do when the price pressures have fully extended to the services sector, adding to the fears that eating costs are spiraling out of control.
``Samgyeopsal,’’ or pork belly cuts, have been a long-time favorite for meat-loving Korean diners, but dearer restaurant bills are now posing a serious threat to their affection.
According to figures by the Bank of Korea (BOK) and Statistics Korea, the cost of samgyeopsal at restaurants annually jumped 14.5 percent in May, marking the steepest trajectory of increase among the 38 major restaurant food items measured by government officials.
It was the fourth consecutive month that samgyeopsal prices jumped by double figures year-on-year, showing the effects of the foot-and-mouth disease that decimated farms up and down the country.
The prices at Chinese restaurants, most of them using pork as a main ingredient, have also increased significantly as well.
Prices of sweet-and-sour pork annually jumped by more than 11 percent, while ``jajangmyeon,’’ or noodles with black sauce, pork and vegetables, rose by 8 percent. ``Jjamppong,’’ or spicy seafood noodles, is also 8 percent more expensive than it was last year, as the prices of fresh seafood continue to rise.
Sushi, which saw its demand decline significantly since the Japanese nuclear crisis, pizza, pasta and fried chicken were among the rare restaurant foods that have become cheaper over the year.
Observers believe exorbitant restaurant bills will continue due to surging demand and inflationary expectations, as well as the rising price of imported grain. The price of imported wheat jumped by nearly 80 percent year-on-year in April, highlighting the elevation in imported grain that rose by more than 44 percent during the period.
``There is a certain time lag before the rise in grain prices is reflected to restaurant bills. Inflation expectations is also a major factor as price movements are often a self-fulfilling prophecy ― once a few companies mark up their prices, rivals will race to follow,’’ said a BOK official.
According to Statistics Korea, the prices of fresh fruit and vegetables declined 17 percent year-on-year in May and 20 percent from the preceding month. However, the price of fish and other seafood items increased nearly 10 percent year-on-year, while meat prices increased by a similar margin during the same period.
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