5Monthly consumer prices 3.1enter the % range amid pressure from high inflation, high interest rates and a strong exchange rate
5Monthly consumer prices rose 3.1% year on year, 26months after 3entering the % range. Oil product prices rose by more than 20%, leading the increase in prices, while the Bank of Korea signaled a base-rate hike in 7. The burden of living costs is growing for ordinary people and vulnerable groups.
5The monthly consumer price increase was 3.1% year on year. Statistics showed that prices entered the % range after 26months. The rate of increase in consumer prices also showed a trend of expanding compared with the previous month.3. The rate of increase in consumer prices also showed a trend of expanding compared with the previous month.
Oil product prices rose by more than 20%. Rising oil prices pushed up energy and transportation costs, affecting prices overall. The increase in consumer prices has continued to expand for 3consecutive months.
Supply shocks stemming from conflicts in the Middle East were cited as a background factor behind rising oil prices. An explanation has emerged that supply instability pushed up international crude oil prices. Rising oil prices are putting additional pressure on domestic prices through their links to import prices.
The Bank of Korea 7signaled a base-rate increase for the month. After remarks concerning the base rate emerged, market interest in the direction of interest rates grew. The direction of interest rates directly affects lending rates and the funding costs of companies and households.
The report said that the burden of living costs, including fuel and food expenses, had increased. The burden on the daily lives of ordinary people and vulnerable groups in particular is worsening. Rising prices are having an immediate impact on household spending patterns.
The exchange rate is remaining at a high level. A high exchange rate acts as a factor that increases the burden of import prices. As a result, a trend is forming in which high prices, high interest rates, and a high exchange rate are occurring simultaneously.