[Economic Outlook] Focus on Surplus Tax Revenue Announcement... Producer Prices Also in Spotlight Amid Inflation Concerns

3rd Quarter Household Trends Also to Reveal National Livelihood Conditions

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki responding to lawmakers' questions at the plenary meeting of the Planning and Finance Committee held at the National Assembly in Yeouido, Seoul on the 11th. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will announce the scale of excess tax revenue and the producer price index this week. With growing global inflation concerns recently, the extent of fluctuations in the producer price index, which will affect the consumer price index with a time lag, is drawing attention.

The Ministry of Economy and Finance will publish the "Monthly Fiscal Trends November Issue" on the 16th. It will include government revenue and expenditure, fiscal balance, and national debt as of last September. The scale of excess tax revenue is a key point of interest. The government had previously prepared a second supplementary budget this summer, anticipating that this year's national tax revenue would exceed the 282.7 trillion won forecasted during last year's main budget formulation by 31.6 trillion won. Even after the second supplementary budget, the tax revenue situation has improved, raising interest in how much more the excess tax revenue will increase beyond 31.6 trillion won. Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki recently predicted at the National Assembly that it would be "a little over 10 trillion won," implying that the excess tax revenue could exceed 41.6 trillion won.

The Bank of Korea will announce the "October Producer Price Index" on the 19th. The producer price index has risen for 11 consecutive months through September. The increase in September was 7.5%, the highest in 10 years and 5 months since April 2011's 8.1%. With continued rises in oil and raw material prices, it is expected to be higher than a year ago. Additionally, the Bank of Korea will release the "End of September International Investment Position (Preliminary)" reflecting external debt and other factors on the 18th.

The Statistics Korea will announce the "Household Trends Survey Results for the Third Quarter of This Year" on the 18th. The household trends survey provides statistics on household income, expenditure, and other aspects of citizens' livelihoods. In the second quarter, the average monthly income of households with one or more members nationwide (including agricultural, forestry, and fishery households) was 4,287,000 won, a 0.7% decrease compared to a year earlier. This was largely due to the base effect from the nationwide disaster relief payments made a year ago. Although labor income and business income both increased due to improved employment and business conditions for the self-employed, overall income declined because public transfer income decreased.

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