'Breadflation' hits consumers as bakery chains hike prices
Summary
Bread prices are climbing in Korea as major bakery chains raise prices on dozens of products, adding to consumer complaints about so-called breadflation. Paris Baguette, Tous les Jours, Dunkin and SPC Samlip all announced or carried out increases. Industry officials blame higher ingredient costs, while a new FTC flour cartel penalty is drawing fresh attention to why bakery prices have risen.
Key Facts
- Paris Baguette raised prices for 127 products by an average of 5 percent from Tuesday, including 86 kinds of bread and 41 cakes and desserts.
- Tous les Jours raised prices for 76 types of bread and cakes by an average of 8.2 percent from July 31, and Dunkin raised prices for 39 types of donuts by an average of 6.5 percent from Aug. 2.
- SPC Samlip plans to raise prices for around 50 bread products by an average of 9 percent from Sept. 1.
- Samil PwC said in May that Korea's bakery price index stood at 138 in 2025, above 126 in Japan and the United States and 120 in France.
- In May, the Fair Trade Commission fined seven flour makers a combined 671 billion won for colluding on prices and supply volumes for nearly six years.
An employee displays bread at a bakery in Seoul, July 7. Yonhap
"I went to a bakery in Jongno District last weekend, and two pieces of bread and two cups of coffee cost more than 20,000 won ($14)," said Yang, a college student in her 20s.
"These days, it feels like I often end up spending more on dessert than on a meal when I hang out with my friends," she said.
For many Korean consumers, bread is no longer a cheap snack, as major bakery chains roll out a fresh wave of price hikes.
Paris Baguette, the country's largest bakery chain, raised prices for 127 products by an average of 5 percent from Tuesday, including 86 types of bread and 41 cakes and desserts.
Tous les Jours raised prices for 76 types of bread and cakes by an average of 8.2 percent from July 31, while Dunkin' raised prices for 39 types of donuts by an average of 6.5 percent from Aug. 2.
SPC Samlip, a confectionery unit under SPC Group, is set to raise prices for around 50 bread products by an average of 9 percent from Sept. 1.
The price increases are not limited to franchise chains. Prices at independent bakeries are also rising, with some products selling for more than 10,000 won.
A post titled "Are these bakery prices for real?" was uploaded to an online community last week, featuring photos of bread priced at 15,000 and 16,000 won each. The writer said the bread was sold at a neighborhood bakery.
The post drew more than 75,000 views and over 100 comments within a day, with many commenters complaining about the high prices of bread and desserts.
Industry officials attribute the price increases to rising ingredient costs, including those of oil and eggs, but consumers say the higher prices are becoming excessive.
According to a report released by Samil PwC in May, Korea's bakery price index stood at 138 in 2025, above 126 in both Japan and the United States and 120 in France, indicating that prices here have risen more sharply than those in major markets.
The latest price hikes have also renewed attention on a major flour price-fixing case.
In May, the Fair Trade Commission (FTC) fined seven flour makers a combined 671 billion won for colluding on prices and supply volumes for nearly six years, marking the largest cartel fine ever imposed in Korea.
They engaged in unfair price-fixing activities between November 2019 and October 2025, targeting their major business-to-business clients, such as manufacturers of instant noodles, confectionery and baked goods.
Flour prices rose by as much as 74 percent during the period, with the higher costs eventually passed on to consumers, FTC said.
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