The cost of groceries is on the rise, creating a difficult situation for those who are already struggling to make ends meet. Statistics Korea reported that the grocery price index increased 6.6 percent last month compared to the same period the year before, the highest jump in 12 months after the 7.6 percent recorded in October of 2020. Fruits such as apples (72.4 percent) and vegetables including lettuce (40.7 percent) and green onions (24.6 percent) have seen significant increases, making it understandable why people are feeling the effects of inflation. Furthermore, processed food companies have also raised their prices, further straining the finances of individuals. The reasons for these hikes include the rising prices of crude oil and raw ingredients, as well as a low crop yield due to weather anomalies.
The problem is that food prices have been increasing for years. From January to December, there was a 5.1 percent year-on-year rise. It is likely that the prices will continue to grow in the coming year. If this trend continues, it will be the first time in over a decade that food prices have risen for three consecutive years.
Those in the lowest income bracket are particularly affected by these prices, as they spend 44.4 percent of their disposable income on food, nonalcoholic beverages, and eating out. This is more than three times the amount spent by the top 20 percent. With prices continuing to climb, it has become increasingly difficult for the working class to make ends meet.
In response to the situation, the government has created a task force to monitor the prices of seven major foods, such as Korean instant noodles, bread, snacks, coffee, ice cream, sugar, and milk. However, it is unclear how effective this approach will be, since external factors and an increase in money supply due to the COVID-19 crisis still have a strong influence on prices.
The government must take action to stabilize food prices and support the economically vulnerable. This can include importing farm produce and releasing agricultural products stockpiled by the government, as well as cracking down on companies that unreasonably raise their product prices. Unless these measures are taken, the livelihood of the working class will continue to be threatened.