Heat wave hikes agricultural prices in Sept.

By Park Jae-hyuk

The record heat wave this summer sharply increased agricultural prices in September, marking the highest consumer price index in seven months, Statistics Korea (KOSTAT) said Wednesday.

The consumer price index, which had stayed below 1 percent for four consecutive months since May, rose to 1.2 percent last month from a year earlier.

However, consumers apparently shouldered more costs than the figure indicates, because the fresh food price index soared 20.5 percent last month year-on-year, marking its highest point since hitting 21.6 percent in February 2011. The fresh food price index measures the price of 51 grocery items including meats, fish and vegetables.

The price of fresh vegetables, in particular, surged 52.5 percent last month from a year earlier. The price of Chinese cabbage, the main ingredient in kimchi, rose 198.2 percent last month year-on-year. Other products, such as spinach, radishes and peppers, also showed record increases of 107.5, 106.5 and 109.1 percent, respectively. Seafood prices rose 7.9 percent last month from a year earlier.

Woo Young-jae, the director of KOSTAT’s price statistics division, said, “The rise of fresh food prices was due to the record-breaking heat wave in July and August which interfered with fresh food production.” He also attributed the rise to a five-day Chuseok long weekend starting Sept. 15, during which demand for fruit and vegetables increased.

The rise, however, was offset by falling gas prices and electricity bills, which dropped 19.1 percent and 12.9 percent, respectively, last month from a year earlier. The drop was led by the low oil price and the government’s temporary program cutting electricity bills from July to September for air conditioning, according to the Ministry of Strategy and Finance.

“The consumer price index will continue to rise smoothly, according to the rise of gasoline and electricity bills,” a finance ministry official said. The official added the government plans to keep monitoring consumer prices to manage living costs and release vegetable reserves during the kimchi-making season, or gimjang, in November and December.