[Inflation Impacting Livelihoods] Prices of 3 out of 4 Items Soar... 61 Items Rise Over 10%

Full Survey of 401 Core Inflation Items
Significant Price Increases in Table Staples Including Noodles (34.9%), Salt (34.9%), Eggs (34.9%), and Pork (34.9%)

[Asia Economy Sejong=Reporters Kim Hyewon and Son Seonhee] Due to the COVID-19 pandemic lasting over two years, prices of three out of four items that make up the core consumer price index have risen. The overall price increase, including items less affected by seasonal or temporary factors, indicates that fundamental inflation is overwhelming the livelihood economy.

On the 2nd, Asia Economy conducted a full survey of 401 items subject to Statistics Korea's 'Consumer Price Index excluding agricultural products and petroleum products (core inflation).' Compared to January 2020, when COVID-19 first broke out, prices rose for 298 items (74.3%). Among these, 61 items showed a high double-digit increase of over 10%.

In particular, prices of basic food ingredients directly linked to 'table prices,' such as noodles (34.9%), salt (34.9%), eggs (34.9%), and pork (34.9%), rose by more than 30%. Among the total 401 items, 21 items (5.2%) maintained stable prices, while 82 items (27.5%) saw price decreases. ▶Related articles on pages 2 and 4

Last month, the core consumer price index excluding agricultural and petroleum products was 103.77 (2020=100 basis), up 3% from the same period last year. The core inflation rate reaching the 3% range is the first time in 10 years since January 2012 (3.1%). The problem is that inflationary upward pressure factors, such as the spread of Omicron and the Ukraine crisis, show no signs of easing. As the perceived inflation rises, the expected inflation rate, which indicates the anticipated inflation rate over the next year (2.7% in February), is also pointing upward.

The government, launching an all-out effort to control inflation, will hold a price-related ministers' meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki on the 4th. This meeting is the first since January 2017 and the first under the Moon Jae-in administration.

In the 'January Industrial Activity Trend' announced by Statistics Korea on the same day, the retail sales index (seasonally adjusted), which shows consumer trends, was 120.8 (2015=100) in January, down 1.9% from the previous month. This is the largest decline since July 2020 (-5.6%). In particular, the leading index cyclical component, which predicts future economic conditions, continued its decline for the seventh consecutive month.

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