Government announces a plan to cut apple and pear prices

The price of fruits skyrocketed by over 38% in February, reaching a record high not seen in 32 years. Global oil prices showed fluctuations, contributing to an overall inflation rate surging to the 3% mark within a month.

Despite the government’s measures to alleviate the burden on fruit prices and tackle inflation, a substantial upward trend in the prices of goods and services closely linked to the livelihood of working-class families is likely to persist.

According to the consumer price index released by Statistics Korea, the price of fruits experienced a year-on-year (YoY) surge of 38.3% in February, marking the most substantial increase in 32 years and five months since September 1991 (43.3%). Notably, the price of tangerines witnessed a YoY growth of 78.1%, recording the most significant increase among all fruit prices. Apples and peaches also saw notable increases of 71.0% and 63.2%, respectively. Among the 20 fruit items in the consumer price survey, 11 items increased by more than 10%. The remarkable rise in fruit prices is largely attributed to the shrinking cultivation area due to the aging farming population and the adverse impact of abnormal climatic conditions, leading to reduced production.

With a substantial increase in fruit prices, the overall consumer price index for February recorded a YoY rise of 3.1%, marking an escalation from the previous month, when inflation had dipped to the 2% range in January and resurged to the 3% mark within one month. The consumer price index for essential items, encompassing frequently purchased goods such as ramyeon and pork, which offers a more tangible reflection of inflation as experienced by the general population, witnessed an even more significant increase, rising by 3.7% YoY.

The government has unveiled a plan to inject 60 billion won to significantly lower the tangible prices of apples and pears, aiming for a maximum reduction of up to half. Song Mi-ryung, the Minister of Agriculture, Food, and Rural Affairs, emphasized a comprehensive approach to mitigate the tangible impact of inflation, particularly focusing on fruits and vegetables with notably high consumer prices, by April, the time when oriental melons are prepared for shipment.


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