Sugar, salt prices surge due to climate change

Bags of sugar are on display at a supermarket in Seoul, Wednesday. Yonhap

Sugar and salt prices are surging, raising concerns that the hikes will push up consumer inflation which accelerated in September for the second month in a row.

According to Statistics Korea, Wednesday, the consumer price index for sugar, against the 2020 baseline of 100, rose to 141.58 in September, up 16.9 percent from a year earlier.

At 20.7 percent, it is the sharpest year-on-year increase since September 2022.

For salt, the consumer price index advanced 17.3 percent year-on-year to 167.17, marking the steepest increase since August 2022 recorded 20.9 percent.

Market observers attributed the price hikes of sugar and salt to intensifying climate change and subsequent diminished production in major producing markets.

Korea’s self-sufficiency in salt is only 10 percent, making it reliant upon global production.

Under the circumstances, industry sources raised concerns that the cost of bread, confections, milk and other consumables containing sugar and salt may also go up.

The sources said the consumer price index could rise too, after advancing 3.4 percent in August and then 3.7 percent in September.

The back-to-back increases in inflation come after a 25-month low of 2.3 percent in July, and mark the fastest annual rise in five months.