Worrying About Living Expenses... "9.5% Increase in Living Cost Inflation Across 30 Countries Worldwide"

Living Costs Rise Faster Than General Prices

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Due to the global surge in inflation, the burden of living expenses is rapidly increasing in countries such as Japan, the United States, and Europe.

On the 15th, Japan's Nihon Keizai Shimbun reported, based on data from the Organisation for Economic Co-operation and Development (OECD), that the cost of living price index?which combines food, rent, and housing costs?was calculated for 30 countries including Japan, the US, and Europe. The report stated that the cost of living inflation rate for these 30 countries reached 9.5% in April. The cost of living inflation rate has sharply increased since surpassing 2% in July of last year.

The rate of increase is seven times the five-year average of 1.3% until 2019, and the overall inflation rate including living expenses was 7.6% as of April, with the cost of living inflation rate (9.5%) exceeding this figure, according to Nihon Keizai. The newspaper evaluated, "Historic high inflation is spreading worldwide," adding, "Prices of essential goods and services for daily life are rising."

The recent rapid increase in living expenses is due to the surge in raw material prices and supply chain disruptions caused by COVID-19, the Ukraine war, and China’s zero-COVID policy. Europe, which has been hit hard by soaring energy prices, recorded a double-digit cost of living inflation rate of 12.4% in April. In the United States, the Consumer Price Index (CPI) has remained in the 8% range for three consecutive months until last month, experiencing the worst inflation in 40 years.

Nihon Keizai noted that while some believe inflation has peaked, "many hold the view that it will take time for inflation to calm down. Demand for services such as travel is likely to increase going forward." It added, "If living expenses continue to rise amid complex crises, social dissatisfaction will grow," warning that "if movements such as export restrictions prioritizing one’s own country spread, division will deepen and inflationary pressures could worsen, creating a vicious cycle."

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