Euljiro — Seoul, South-Korea
Asian country boasts high grocery prices
It’s no secret that the prices of products of varying grocery stores are rising, especially with more and more people moving to healthier, organic alternatives. But have you ever wondered how our grocery store prices compare to other parts of the world?
In a surprising new report, data shows that groceries are more expensive in Seoul than in New York or Tokyo. Only five Swiss cities surpassed the South Korean capital in grocery costs, according to city and country database website Numbeo.
Seoul’s groceries price index amounted to 105.01, placing it at No. 6 on a list of 375 major cities. Swiss cities Zurich was No. 1 at 130.18, followed by Basel (128.26), Lausanne (127.70), Geneva (119.81) and Bern (113.57).
New York followed Seoul with an even 100 while Norway’s Trondheim came in eighth and Honolulu ranked ninth. Tokyo came in at No. 15. Pakistan’s Rawalpindi had the cheapest groceries, marking a score of 14.37.
The grocery price index is calculated according to the retail prices of items such as meat, vegetables, and fruit.
Seoul has the most expensive bananas, potatoes, and tomatoes in the world, while oranges and apples are the second most expensive. Beef is the third most expensive. Lettuce, cheese ad milk are also expensive items for shoppers in the South Korean capital.
The reason why groceries are so expensive in Seoul is because of structural reasons. Unlike the U.S. – where meat, fruit, and vegetables are grown on massive industrial farms in the U.S. and goods that are not produced locally are imported from neighboring countries – Korea remains largely dependent on small farms.
Korea’s retail market structure is also more complicated. In other countries, large farms sell products directly to retailers, but for fresh produce, the Korean market is still dominated by wholesale merchants.
By: Maytinee Kramer
