[Report] "Prices Have Risen Too Much"...Common People Sigh Over Soaring Inflation

Consumer Price Inflation Rate Records 3% Increase for Four Consecutive Months Through Last Month
Agricultural, Livestock, and Fishery Products, Petroleum, Electricity, Gas, Water, Rent Show Broad-Based Price Increases
"Seol Holiday Has Passed... Prices Feel Like They Have Risen Further," Citizens Lament
Experts Say "Government Must Prepare for Resource Development in Response to Global Supply Chain Changes"

Afternoon of the 7th, inside Namguro Market, Guro-gu, Seoul. Photo by Seulgi Yoon seul97@asiae.co.kr

[Asia Economy Reporter Yoon Seul-gi] "Even now, I've cut back, so how can I reduce food expenses any further?"

As inflation has soared, with the inflation rate staying in the 3% range for four consecutive months for the first time in 10 years, citizens' worries are deepening. Prices have risen across almost all items, including agricultural and livestock products, electricity, gas, water, rent, and manufactured goods.

On the afternoon of the 7th, a customer visiting a vegetable store inside Namguro Market in Guro-gu, Seoul, pointed at a pile of garlic and asked, "How much is this?" The vendor replied, "Yes, fifteen thousand won." However, the customer passed by without responding. Mr. A, a vegetable vendor in his 60s, said calmly, "It's not the first or second time that customers ask the price and leave because it's expensive. Now, I just accept it."

Mr. A lamented, "Since COVID-19, the number of people in the market has decreased for two years now, and with prices rising, business is not easy," adding, "I can't do anything about it, so I just work with gratitude when customers come."

On the afternoon of the 7th, inside Namguro Market in Guro-gu, Seoul. Citizens are shopping. Photo by Seulgi Yoon seul97@asiae.co.kr

Perhaps due to the closure of the adjacent Guro Market, Namguro Market was crowded, but with high inflation continuing even after the Lunar New Year, citizens seemed to buy only the groceries they immediately needed before leaving the market. Mrs. B, a housewife in her 60s who came to buy dinner ingredients, said, "I only bought lettuce, cucumber, and eggplant to make side dishes today," sighing, "Prices were already a burden before the Lunar New Year, but it feels like prices have risen even more after the holiday."

Looking at the chili peppers displayed in front of a Chinese grocery store, she said, "Before the Lunar New Year, these cost 8,000 won for this amount, but now it's 10,000 won," adding, "I already bought sparingly, but I can't reduce what I eat here any further. I hope prices stabilize quickly."

According to the 'January 2022 Consumer Price Trends' released by Statistics Korea, the consumer price inflation rate remained in the 3% range for the fourth consecutive month through January. The consumer price index last month was 104.69 (2020=100), a 3.6% increase compared to the same month last year. This marks the first time in nearly 10 years that inflation has stayed above 3% for four consecutive months since the 18 months from September 2010 to February 2012.

On the afternoon of the 7th, inside Namguro Market, Guro-gu, Seoul. Photo by Seulgi Yoon seul97@asiae.co.kr

Looking at the inflation rates of major items, agricultural, livestock, and fishery products rose 6.3%, industrial products 4.2%, electricity, gas, and water 2.9%, and rent 2.1%. In particular, livestock products increased by 11.5%, including pork (10.9%), imported beef (24.1%), domestic beef (6.9%), and eggs (15.9%). Agricultural products such as strawberries (45.1%) also rose by 4.6%.

More concerning is that the core inflation rate reached 3.0%, the highest in 10 years. The core inflation index excludes temporary price fluctuations caused by seasonal factors or external environments, indicating a long-term inflation trend. The living cost index, which reflects perceived inflation, also rose by 4.1%.

Meanwhile, there are concerns that the inflationary trend will continue for some time. On the 4th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said at the National Assembly's Planning and Finance Committee, "The government will work harder to stabilize prices soon," but added, "Global supply shocks, such as raw material prices, play a significant role in inflation, making it somewhat difficult for the government to respond."

Experts emphasize that since domestic inflation is heavily influenced by import prices, government countermeasures are urgently needed.

Professor Kim Tae-gi of Dankook University's Department of Economics said, "While raw material prices have risen due to supply-demand imbalances after COVID-19, a more important factor is the changing global supply chain and moves by some countries, including China, to weaponize resources, which are stimulating inflation," adding, "The government must devise measures to secure stable procurement of necessary imports and focus on resource development, closely monitoring global trends to prepare accordingly."

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