Fuel prices climb, egg prices jump…a double hit from war and livestock disease puts the dinner table under inflationary pressure

Fuel prices still in the high 1,800-won range despite introducing a maximum oil-price cap

A tray of eggs tops 7,000 won

Pork belly, Korean beef and chicken also on the rise

With Middle East tensions escalating after U.S. and Israeli airstrikes on Iran, and compounded by the spread of livestock epidemics, domestic prices are swinging sharply. As international crude and energy prices surge and food prices rise at the same time, consumers’ inflation burden is growing.

According to foreign media on the 15th, oil prices jumped again after Ayatollah Seyyed Mojtaba Khamenei—elected as Iran’s new supreme leader—mentioned the possibility of blocking the Strait of Hormuz and vowed a strong response to the United States.

According to ICE Futures Europe on the 12th (local time), Brent crude futures for May delivery settled at $100.46 a barrel, up 9.2% from the previous session. On the New York Mercantile Exchange, WTI futures for April delivery settled at $95.73 a barrel, up 9.7%.

Rising global crude prices are pushing up domestic refined-product prices and affecting overall living costs. The government responded by introducing a “maximum oil-price cap” on the 13th to set upper limits for petroleum product prices, but gasoline and diesel prices at gas stations nationwide are still holding in the high 1,800-won-per-liter (ℓ) range.

On top of that, outbreaks of wintertime avian influenza (AI), African swine fever (ASF) and foot-and-mouth disease are also driving up domestic egg and meat prices. According to the Korea Institute for Animal Products Quality Evaluation, as of the 12th, the average retail price for 30 extra-large eggs was 7,045 won, up 16.6% from a year earlier. It has been about a month and a half since egg prices last exceeded 7,000 won.

The government imported 2.24 million U.S. fresh eggs starting in January to stabilize supply and demand, but that has not been enough to curb the price rise. The increase in culling due to the spread of AI is a major factor. About 9.76 million laying hens were culled this winter season, more than double last year’s level.

Prices for major livestock products including pork, beef and chicken are also trending higher. As of the 13th, pork belly was 2,611 won per 100g, up 3.3% year on year. Grade 1++ Hanwoo tenderloin was 13,977 won per 100g and sirloin 10,148 won, up 4.5% and 3.1%, respectively. Chicken also rose 7.6% to 6,245 won per 1kg.

The spread of livestock epidemics is underpinning the rise in livestock prices. According to the Ministry of Agriculture, Food and Rural Affairs, ASF cases totaled 22 this year, the highest on record since the country’s first outbreak in 2019. On top of that, 53 cases of highly pathogenic AI and three cases of foot-and-mouth disease have been reported, with major livestock diseases spreading simultaneously.

When energy and food prices rise together, the burden on working-class households becomes heavy. Higher oil prices lift production costs across the board—transportation, feed and electricity—creating a structural chain effect that in turn feeds into higher prices for agricultural, livestock and fisheries products.

To stabilize prices, the government designated 23 items—including pork, eggs, cooking oil and telecommunications fees—as “special livelihood price management items.” Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol convened a task force (TF) meeting on the 12th to discuss an intensive inspection plan for the first half.

The items under management include 13 food items (pork, eggs, rice, flour and others), five service items and five industrial goods. The government plans to closely monitor supply and prices for these items throughout the first half, stepping up efforts to stabilize inflation.

Park Soo-rim, Hankyung.com reporter paksr365@hankyung.com