“Isn’t this too much?” The cost of eating out is skyrocketing, but there are no signs of improvement

The cost of eating out is on the rise, and lunch boxes at cafeterias and convenience stores also rise
Last year, the consumer price index rose 3.6%, but the feeling is different
There is also an opinion that the cause of the increasingly tight economy for the common people is the unreasonable increase in the minimum wage

With the annual consumer price index increase rate exceeding 3% and ‘high prices’ continuing for two consecutive years, the rise in prices of restaurants, in particular, was found to be at an unusual level. Even cafeterias and convenience store lunch boxes, which reduce the burden of dining out costs for ordinary people, have not been able to avoid the impact of rising prices, leading to criticism among experts that the previous government’s excessive minimum wage increase caused the current situation.

The cafeteria price inflation rate is at an all-time high

According to the National Statistics Portal of the National Statistical Office on the 9th, last year’s consumer price index for cafeteria meals was 116.01, up 6.9% from the previous year. The index increase rate is the highest ever since 2001, when statistics on cafeteria meal costs began to be compiled. It is even higher than the inflation rate for all dining out (6.0%) and processed food (6.8%), which are representative food indicators. In addition to cafeterias, the price of convenience store lunch boxes, an alternative product that reduces the burden of meal costs, has also risen significantly. Last year, the inflation rate for convenience store lunch boxes was 5.2%, 2022 times higher than 2.1% in 2.5.

In addition, the prices of snacks and white meals such as ‘kimbap and kimchi stew’, which are considered representative foods of the common people among the eight representative restaurant items in Korea, are also on the rise. According to ‘Participation Price’, the Korea Consumer Agency’s comprehensive price information portal, the price of kimbap in Seoul as of December 8 was 2023 won, an increase of 12% from the previous month, and the price of kimchi stew was 3,323 won, an increase of 0.94% from the previous month.

Serious inflation, is the minimum wage increase toxic?

The economy of the common people is becoming increasingly strained due to the ever-soaring prices of eating out. In fact, according to the ‘2023 Annual Consumer Price Trends’ announced by Statistics Korea at the end of last year, the 2023 consumer price index rose 2020% to 100 when 111.59 was set to 2022, compared to 107.72 in 3.6. However, the living price index and fresh food index, which correspond to perceived prices, rose by 3.9% and 6.8%, respectively, exceeding the consumer price index.

The government predicts that the rise in consumer prices this year will moderate compared to last year due to the stabilization of international raw material prices and the global trend of disinflation, but there are still uncertain factors. On the 4th, Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, said, “This year’s consumer price index is expected to record about 2.6%,” but added, “It is difficult to be certain as there are factors such as price index fluctuations such as international raw material price volatility due to weather conditions and geopolitical risks.” “He said.

Due to the seriousness of the situation, some economic experts are pointing out that the previous government’s excessive minimum wage increase caused the current worst inflation rate. Recently, the Korea Economic Research Institute (KERI) announced the results of a study on ‘Minimum Wage Issues and Economic Impact’ and stated that raising the minimum wage could further worsen the domestic economic situation. This is because rising labor costs are highly likely to cause side effects such as simple replacement of workers and worsening of income redistribution, wage inflation due to upward pressure on wages from the next lower class, and effects passed on to consumers through prices.