S. Korea's low inflation and how people feel about it
- 5 years ago
5개월째 0%대 소비자물가...그러나 체감물가는 높다?
South Korea's consumer inflation has remained below one percent since Janaury.
On Tuesday, the governor of the nation's central bank suggested that this will likely continue.
Low inflation might sound good for consumers, but it's not clear they feel that way about the price they're paying for things they buy every day.
Our Ko Roon-hee explains.
Consumer prices edged up 0-point-7 percent on-year last month in Korea... which is far lower than the central bank's two-percent target.
Statistics Korea attributed the sluggish inflation to low domestic demand... and the government expanding welfare policies such as free education.
"Although consumer price growth in Korea has remained below 1-percent for five consecutive months, many say they haven't felt the trend in their everyday lives....especially here at supermarkets."
This is mainly because prices of what consumers use and buy every day, such as fresh food and daily necessities, are rising.
Data from Korea Consumer Agency, a government organization, shows that the average price of 30 frequently consumed processed foods has been going up in recent months.
"I feel like the price of everything has gone up. It's too expensive. Especially the things I buy, like rice, anchovies and fruit. I only buy things that are really necessary."
"The price of alcohol has risen,...including soju. The cost of drinking has become quite burdensome."
And it's not just groceries.
The average price of dining out has jumped as well.
The average price of a roll of Gimbap was slightly more than two U.S. dollars in April, which is an increase from last year's figure of one dollar 90 cents.
Kimchi-jjigae with rice, another popular restaurant dish, increased to almost five-and-a-half dollars.
An expert in the field explained what the difference between real inflation and the inflation that people actually feel means for the economy.
"In a situation where consumers feel difficulties affording everyday purchases, but figures show prices aren't high... problems can occur when the government establishes economic policies. For instance, public utility charges can change depending on the consumer price index."
While the government explains it's difficult to completely reduce the gap... saying different households have different expenditure structures, experts say that the difference negatively affects how people feel about their quality of life.
Ko Roon-hee, Arirang News.
South Korea's consumer inflation has remained below one percent since Janaury.
On Tuesday, the governor of the nation's central bank suggested that this will likely continue.
Low inflation might sound good for consumers, but it's not clear they feel that way about the price they're paying for things they buy every day.
Our Ko Roon-hee explains.
Consumer prices edged up 0-point-7 percent on-year last month in Korea... which is far lower than the central bank's two-percent target.
Statistics Korea attributed the sluggish inflation to low domestic demand... and the government expanding welfare policies such as free education.
"Although consumer price growth in Korea has remained below 1-percent for five consecutive months, many say they haven't felt the trend in their everyday lives....especially here at supermarkets."
This is mainly because prices of what consumers use and buy every day, such as fresh food and daily necessities, are rising.
Data from Korea Consumer Agency, a government organization, shows that the average price of 30 frequently consumed processed foods has been going up in recent months.
"I feel like the price of everything has gone up. It's too expensive. Especially the things I buy, like rice, anchovies and fruit. I only buy things that are really necessary."
"The price of alcohol has risen,...including soju. The cost of drinking has become quite burdensome."
And it's not just groceries.
The average price of dining out has jumped as well.
The average price of a roll of Gimbap was slightly more than two U.S. dollars in April, which is an increase from last year's figure of one dollar 90 cents.
Kimchi-jjigae with rice, another popular restaurant dish, increased to almost five-and-a-half dollars.
An expert in the field explained what the difference between real inflation and the inflation that people actually feel means for the economy.
"In a situation where consumers feel difficulties affording everyday purchases, but figures show prices aren't high... problems can occur when the government establishes economic policies. For instance, public utility charges can change depending on the consumer price index."
While the government explains it's difficult to completely reduce the gap... saying different households have different expenditure structures, experts say that the difference negatively affects how people feel about their quality of life.
Ko Roon-hee, Arirang News.