No administration can beat inflation: price stability policy should be top priority

These days, as grocery prices continue to rise, more housewives are timing their shopping trips with discount hours. Some have even asked their families for permission to shop during these hours, delaying dinner until about 8 p.m. With most lunch outings costing well over 10,000 won, many office workers are opting for cheaper convenience store or supermarket lunch boxes—or even packing their own ready-to-eat meals. The trend reflects strained household budgets as real incomes have declined under persistently high prices since last year.

In a situation where prices have risen across the board—from fresh and processed foods to everyday household items—people are cutting back on shopping trips and focusing on lower-cost options. Data released by the Ministry of Trade, Industry, and Energy shows that the monthly number of purchases and the average spending at large supermarkets mostly decreased compared to the previous year. The retail sales index fell 2.2% last year, marking its largest drop in 21 years since the 2003 credit card crisis (-3.2%), leaving domestic consumption frozen.

The problem is that prices are likely to rise even more this year. In the short term, there is no effective tool to shake off high oil prices and strong currency fluctuations, while domestic and international uncertainties continue to add pressure. Internationally, the U.S.-initiated high tariff policy—dubbed “trumpflation” (trump + inflation)—is also contributing to the uncertainty by driving prices higher.

Although high prices are increasing the burden on everyday life, the government has yet to implement any targeted measures. Bank of Korea Governor Lee Chang-yong told the National Assembly on the 18th that while the central bank can control the inflation rate through interest-rate adjustments, fundamentally high price levels require structural reforms—such as expanding imports—in addition to monetary policy, making a quick resolution extremely difficult.

Earlier on the 11th, Agriculture, Food and Rural Affairs Minister Song Mi-ryeong met with food industry representatives and asked for their cooperation in stabilizing prices. However, amid an impeachment atmosphere, it remains unclear how much influence the government will wield. While the representatives pledged to minimize the extent of any price increases and delay their timing as much as possible, many companies have already raised prices repeatedly this year.

The saying “no administration can beat inflation” underscores how deeply high prices affect everyday life. The Wall Street Journal recently noted that “Donald Trump was elected due to voters’ backlash against inflation during former President Joe Biden’s term.” It warned that a resurgence of inflation could be Trump’s greatest threat. In the United States, a “doomsday consumption” trend has emerged, with consumers stockpiling items like toilet paper and emergency supplies in anticipation of further price hikes. In South Korea, where consumers are experiencing rapid price increases, such buying behavior is becoming increasingly common.

When high prices erode real incomes, consumption declines, triggering a vicious cycle that can lead to reduced production and investment. It is more important than ever to manage prices stably, yet without a central command, runaway prices show no sign of coming down. In this era of high prices, most citizens—except for a small number of the wealthy—are suffering the most. Political circles and the government must recognize that public anger over rising prices fuelling widespread hardship is more significant than many assume.