A state-funded think tank says that prices of imported grain and locally processed food items will further rise in the second half of this year, stoking inflation concerns already gripping the nation.

The Korea Rural Economic Institute(KREI) presented the projection on Wednesday, saying international grain prices that reached a peak in the second quarter due in part to Russia's war on Ukraine will be factored into the import prices in the nation in the third quarter, boosting the import prices by some 16 percent from the second quarter.

The institute predicted that the import prices of grain in the fourth quarter will drop from the third quarter but will still remain higher than the second quarter.

Given that raw material costs account for up to 78 percent of local processed food producers’ manufacturing costs, the KREI said a hike in imported grain prices will lead to an increase in production costs and eventually growth in consumer prices.

Producers and distributors of ramyeon, confectionery, chicken, pizza and hamburgers are considered to be among those to be hit hard by the rise in imported grain prices.