[Editorial] War and Super El Nino: Urgent Measures Needed to Curb Soaring Prices

Scientists describe the current state of the Earth as being like an "elevator going up." Global warming, combined with El Nino, is exponentially increasing the intensity of disasters. While one region suffers severe damage from torrential rainfall, another is experiencing extreme droughts that are destroying crops. Such extreme weather events further exacerbate the global food crisis.

According to the UK daily The Guardian, citing analysts at Goldman Sachs, global food prices could surge by as much as 15.8% this year due to the super El Nino phenomenon. El Nino refers to a phenomenon in which sea surface temperatures near the equator rise, causing changes in weather patterns. The US National Oceanic and Atmospheric Administration has stated that El Nino has already begun, and there is a 63% chance it will develop into a super El Nino (a situation where Pacific sea surface temperatures are more than 2 degrees higher than average). Italy’s UniCredit Bank predicted that prices of rice, palm oil, coffee, and sugar could soar by 50% to over 100%.

Already, food prices have soared to a three-year high due to the war between the US and Iran, and further shocks are expected. As rising energy prices are compounded by increases in agricultural product prices, the cost of living for ordinary people is likely to rise sharply. According to the Korea Exchange on July 13, the KOSPI index fell by 11.8% compared to the end of last month, while the "Meritz Leverage Major Agricultural Futures ETN(H)" rose by 9.1%. Products investing in wheat, corn, and soybeans also increased by more than 6%. Companies in the confectionery, beverage, and instant noodle industries, which rely heavily on imports for raw materials, are facing greater cost burdens. This trend is likely to lead to further increases in the prices of processed foods and dining out.

With climate change and war occurring simultaneously, more sophisticated measures to stabilize prices are urgently needed. The Ministry of Agriculture, Food and Rural Affairs and the Ministry of Economy and Finance should monitor, on a weekly basis, the prices of internationally traded rice, sugar, coffee, wheat, and corn, weather conditions in major production areas, domestic inventories, and futures contracts. It is necessary to diversify import sources, increase reserves of items that can be stockpiled, and support the private sector in securing inventories and long-term contracts for imported raw materials. Comprehensive and proactive measures are essential.

This content was produced with the assistance of AI translation services.