Food and dining prices could increase en masse next year

As food prices continue to soar, there are growing concerns that food and dining prices could continue to rise through next year. This is because the price of major food ingredients has risen significantly, and the surge in the won-dollar exchange rate could trigger a domino effect.

According to the Agriculture, Food and Rural Affairs Ministry on Sunday, the World Food Price Index released by the United Nations Food and Agriculture Organization (FAO) hit 127.5 last month, the highest in 19 months. The index examines the price movements of 24 food items and compares them to the average price from 2014 to 2016, with 100 being the average price.

While food prices are rising globally, the Korean won-dollar exchange rate has risen above 1450 won, putting upward pressure on domestic food prices. This is because Korea imports most food stuff, and a sustained high exchange rate will hurt companies' profitability, leading to price increases.


Do-Hyong Kim dodo@donga.com