Seoul, South Korea – Statistics Korea is mulling over the possibility of incorporating delivery fees into its Consumer Price Index (CPI), a move that could provide a more accurate reflection of consumer spending patterns in the age of food delivery.

The agency has been tracking a separate delivery fee index since late 2021, in response to the growing popularity of food delivery services and the increasing portion of food costs attributed to delivery charges. This separate index has allowed for a more granular analysis of food price changes, distinguishing between increases in food prices themselves and increases in delivery fees.

“We are carefully considering whether to include delivery fees as a separate item in the CPI during the upcoming base year revision,” said Lee Hyung-il, head of Statistics Korea, in a parliamentary hearing last year.

Currently, Statistics Korea calculates a monthly delivery fee index and releases the results quarterly. For instance, if a restaurant charges 7,000 won for a bowl of jajangmyeon (noodles in black bean sauce) and an additional 3,000 won for delivery, only the 3,000 won would be included in the delivery fee index.

However, the agency recognizes the need for a more nuanced approach, as the prevalence of food delivery varies widely across different food items. To account for these differences, Statistics Korea assigns weights to delivery fees based on the delivery rate for each food item. Items with higher delivery rates have higher weights in the index.

Despite the growing importance of delivery fees, the index has exhibited significant monthly fluctuations, largely due to the impact of promotions and discounts offered by delivery platforms. For example, in 2022, the monthly average delivery fee index decreased by approximately 19% compared to the previous year, with some months experiencing declines of over 30%.

Statistics Korea attributes these fluctuations to the dynamic nature of the delivery market, characterized by frequent price promotions and discounts.

“Before making a final decision on including delivery fees in the CPI, we will conduct a thorough analysis of household spending patterns to determine the weight of delivery fees in the overall consumer basket,” said a Statistics Korea official. “The index must be both reliable and representative of consumer behavior.”

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