Food prices keep climbing as costs squeeze households

Prices of major processed foods — including ramyun, mandu, beverages and bread — are rising in rapid succession as high oil prices and a weak won drive up raw material costs, adding to the financial burden on households.

Paris Baguette will raise prices on 86 bread products and 41 cake and dessert items by an average of 5.0 percent starting Aug. 25, according to industry sources. Among the affected items, the "Sangmi Jong" fresh-baked loaf will go from 3,900 won to 4,100 won, the castella from 2,400 won to 2,500 won, and the "My Number One Cake" from 35,000 won to 36,000 won.

The increase is the first in one and a half years, since February last year. "We were compelled to adjust prices due to rising raw material costs and various other expenses," a Paris Baguette official said.

Data from the Korea Agro-Fisheries and Food Trade Corporation (aT) show that the average price of hard red winter wheat — the main ingredient in flour — on the Chicago Mercantile Exchange this month stood at $266.31 per ton, up 39.1 percent from a year earlier. The average price so far this year, at $231.79 per ton, is the highest in three years since 2023, when the impact of the war in Ukraine was still being felt.

Ottogi, facing accumulated cost pressures, will raise factory prices on some cup ramyun and mandu products from Sept. 7. The affected items include Jin Ramen, Yeol Ramen, Chamkkae Ramen, Cup Noodle and X.O. The average price increase is 6.7 percent across 29 items under 11 cup ramyun brands, and 7.7 percent across 16 items under three mandu brands.

Under the new pricing, Jin Ramen Spicy (110g) and Yeol Ramen (105g) cups will rise from 1,200 won to 1,300 won, while Chamkkae Ramen (110g) will go from 1,400 won to 1,550 won. The premium mandu brand X.O.'s gyoza (324g×2) and shrimp and red crab gyoza (324g×2) will increase from 10,480 won to 11,480 won. Bag ramyun — which accounts for 60 percent of Ottogi's total ramyun sales — will not see a price change.

Ottogi said it had continued to streamline production processes and cut costs, but that prolonged input cost increases made a price adjustment unavoidable. "The prices of key raw materials such as palm oil and flour, as well as packaging materials including film and plastic containers, are rising due to the high exchange rate and fluctuations in international oil prices," a company official said.

Samlip will also raise prices on about 50 bread products by around 9 percent next month; at convenience stores, the "Jeongton Boreumdal" will go from 1,800 won to 2,000 won and the "Hershey Choco Sand" from 2,200 won to 2,400 won. Pulmuone raised consumer prices on 30 items across seven product categories — including snacks, kimchi, frozen fried rice, sauces, processed egg products, mandu and noodle meal kits — by an average of 6.7 percent from Thursday. Earlier this month, Nongshim raised factory prices on its major cup ramyun and snack products by an average of 6.0 percent and 5.5 percent, respectively. CJ CheilJedang, CJ Foodville, Lotte Chilsung and Coca-Cola Beverage have also implemented price increases.

The government said in its August edition of "Recent Economic Trends" — the so-called Green Book — published Friday that the burden on households continues to grow due to inflation driven by high oil prices, and pledged to do its utmost to stabilize supply and prices of key goods in the second half of the year.