S. Korea’s ‘foodstuff inflation’ third highest among OECD nations

South Korea saw the steepest “foodstuff” inflation in 10 years in the second quarter of this year due to sluggish crops and aftermath of avian influenza epidemics. The inflation represents the third highest among the OECD members. As African swine fever has occurred at pig farms three months after the control of the previous outbreaks, concern is mounting over runway foodstuff prices. ahead of the Chuseok (Korean thanksgiving) holiday.

According to The OECD on Sunday, the price of foodstuff and beverages (excluding alcoholic drinks) jumped 7.3 percent year on year in the second quarter. The gain represents the biggest jump for a second quarter tally since 2011 (7.8 percent per annum), and is third highest after Turkey (18.0 percent) and Australia (10.6 percent) among the OECD member nations.

In the second quarter of last year, South Korea’s inflation of foodstuff and beverages ranked 26th among the 37 OECD member countries. The country saw the inflation jump 23 steps a year later. Analysts say that the inflation is due to sluggish crops resulting from scorching heat wave and aftermaths of avian influenza that has caused the price of agro products to spike.


Teuk-Gyo Koo kootg@donga.com