Farm and livestock prices edge up 0.5%, easing food inflation

Farm and livestock prices rose just 0.5 percent in July even as overall consumer prices continued to climb at a rate in the upper 2 percent range, helping to stabilize food costs, the Ministry of Agriculture, Food and Rural Affairs said Tuesday.

The Ministry of Statistics' July consumer price survey showed overall consumer prices rose 2.8 percent from a year earlier, while farm and livestock prices edged up only 0.5 percent, the Agriculture Ministry said.

Agricultural prices fell 2.2 percent from a year ago, as most produce remained stable despite recent rainfall and heat waves, with crops generally in good condition.

Rice and green onions bucked the trend, however. Rice has been trading at around 61,000 won ($43) per 20-kilogram bag since July 2, holding roughly steady, and the government plans to minimize consumer costs through discount support programs while monitoring price trends. Green onion prices remain below their seasonal average as summer-crop shipments continue, but edged up from a year earlier due to a base effect from unusually low prices last year.

For crops that have seen sharp price declines — including radishes, cabbage, zucchini and cucumbers — the government plans to support farm household stability through a combination of agricultural input discounts, consumption-promotion events and shipment adjustments.

The livestock consumer price index rose 4.4 percent from a year earlier. The lingering effects of reduced supply caused by the spread of livestock infectious diseases last year continued to weigh on prices, but the pace of increase has been gradually slowing as discount events expand and output recovers.

Pork and chicken prices have stabilized on increased wholesale market shipments and imports of broiler hatching eggs. The government plans to continue applying quota tariffs on pork raw materials, running discount events and supporting chicken supply prices.

Beef prices remain elevated due to a decline in domestic cattle numbers, reduced production in major exporting countries such as the United States, and a weaker won. Egg prices are also high amid the impact of livestock infectious diseases, but the government is working to stabilize supply and demand through imports of fresh eggs and delivery price support.

Processed food and dining-out prices rose 1.0 percent and 2.6 percent, respectively. The government acknowledged that price increases for some products are unavoidable given rising international raw material costs and exchange rate pressures, but said it would minimize the burden on consumers through tax support, financial assistance and expanded discount programs.

Park Jeong-hun, director general for food policy at the Ministry of Agriculture, Food and Rural Affairs, said the government would "strengthen crop management and supply-and-demand monitoring by item in response to summer weather conditions and changes in the international situation, and respond preemptively to stabilize food prices."