South Korea's overall consumer price level is below the OECD average, but its grocery prices are the second highest among member countries, following Switzerland. The country has maintained a top position in grocery prices based on purchasing power parity (PPP) for three consecutive years.
According to an analysis by Yonhap News of OECD's PPP-based price level statistics, South Korea's household final consumption (HFC) price index for 2024 is 78, below the OECD average of 100, ranking 23rd among 38 member countries.
The HFC price index reflects a comprehensive range of consumer items, including groceries, housing, transportation, education, and culture. In South Korea, prices for housing (54.7), transportation (75.3), leisure and culture (80.7), and food and accommodation (93.6) are lower than the OECD average, resulting in a relatively low overall price level.
In contrast, grocery prices are an exception. South Korea's grocery and non-alcoholic beverage price index for 2024 is 146, which is 46% higher than the OECD average. This places it second highest among member countries, just behind Switzerland (147).
When compared to major developed countries, the differences are significant. Japan's index is 121, the United States is at 107, while France is at 100, Germany at 95.2, and the United Kingdom at 91.4, all considerably lower than South Korea.
South Korea's high grocery prices are not a temporary phenomenon. In 2022, the grocery price index was 152, ranking it second alongside Switzerland, just behind Israel (155). In 2023, the index dropped to 150, allowing South Korea to surpass Switzerland (147) and claim the top spot in the OECD. Last year, the index slightly decreased to 146, but South Korea still maintained its second-place position behind Switzerland, marking three consecutive years in the top tier. Additionally, the price index for clothing and footwear was 115, and education costs were at 108, both exceeding the OECD average.
The OECD's PPP-based price level reflects the relative price levels of countries, taking into account income and purchasing power. It serves as a key benchmark for evaluating living costs across nations, as it compares actual prices experienced by consumers rather than simple exchange rates.
* This article has been translated by AI.
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