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Rice prices have remained elevated for seven consecutive months, squeezing household budgets across South Korea.

According to the Korea Agro-Fisheries & Food Trade Corporation on April 19, the average retail price for 10 kilograms of rice stood at 36,214 won ($26) as of April 18, up 23.1% year-over-year and 25.8% above the historical average. The 20-kilogram price reached 62,951 won, rising 13.7% from last year and 16.5% above normal levels. Farm-gate prices also climbed to 57,716 won per 20 kilograms, up 19.7% year-over-year and 19.4% above historical averages.

Rice prices crossed the 60,000-won threshold for 20 kilograms in September last year and have since hovered around 63,000 won. The rice inflation rate reached 17.7% last month, according to the National Data Center—roughly nine times the overall consumer price inflation rate of 2.0%.

Agriculture Minister Song Mi-ryeong pledged price stabilization in August last year, stating that "60,000 won for 20 kilograms is consumers' psychological resistance level," and repeatedly forecast prices would decline after the harvest. Instead, prices have continued climbing.

The Ministry of Agriculture announced late last month it would gradually release 150,000 tons of government rice reserves. However, market prices have yet to show a clear response. The ministry attributed the delay to a time lag before supply effects are reflected in farm-gate and retail prices.

Rising rice costs are spilling over into restaurant prices. In Seoul's dining districts, the price of a side bowl of rice is climbing rapidly. Many establishments have raised prices from 1,500 won to 2,000 won ($1.50), while some have doubled their prices from 1,000 won.

A 2,000-won side of rice was unthinkable just a few years ago but is now becoming the standard in central Seoul restaurants. "With rent, labor costs, and ingredient prices all rising, raising rice prices was an unavoidable choice," said one restaurant owner operating a barbecue restaurant in Seoul. "Honestly, even at 2,000 won, we're not making money on it."

Source : sedaily