Vegetables and fruits-‘Earth’ for rent … Consumer prices in the deflationary fog increased 1% in half a year

▲ The price of the table shoots up due to the long rainy season. Yonhap News

Last month, consumer prices rose about 1% in half a year. After the longer rainy season and torrential rains, prices of agricultural, livestock and fishery products, such as vegetables and fruits, increased more in 9 years and 6 months. Amid the controversy over the government’s real estate policy, the burden of rents such as jeon and monthly rent has increased significantly.

On the other hand, the origin price, called ‘Gyeonggi Thermometer’, has reached 0% during the fourteenth month since August last year. Dining table prices rose due to weather, which triggered inflation, but concerns persist about the reproliferation of Corona 19 (Wuhan pneumonia) in China, and concerns about deflation continue (recession due to low demand) due to low international oil prices. It is an analysis that there is a feeling that it is too early to judge that it was removed.

According to the September consumer price trend published by the National Statistics Office on the 6th, the consumer price index last month was 106.20 (2015 = 100), an increase of 1.0% in compared to the same period last year. Since last March (1.0%), it has registered an increase of 1% in six months.

The consumer price index increased 1% from January to March this year, but fell to 0.1% in April when Corona 19 began to spread in earnest, and in May it was negative (-) 0.3%, which was 8 since September ( -0.4%) last year. The 0% level collapsed in months. In terms of the second decimal place, inflation was practically negative even in June (-0.01%), but the emergency subsidies for disasters granted to all citizens since July had a limited impact on inflation and rose to the level of principles. of year.

Post-August inflation has fueled the uptrend as table prices have risen sharply due to the dull rainy season and typhoon. While the life price index rose 0.9%, the fresh food index rose 21.5%.

By quality, agricultural, livestock and fish products (13.5%) and services (0.5%) increased compared to last year. On the other hand, industrial products (-0.7%) and electricity, water and gas (-4.1%) decreased.

Agricultural, livestock and fishery products showed the highest increase in 9 years and 6 months since March 2011 (14.6%). Radish (89.8%), Chinese cabbage (67.3%), tomatoes (54.7%), chives (40.1%), apples (21.8%) and beef national (10.6%) showed a significant increase. The prices of ginger (-26.2%), beans (-13.5%) and mushrooms (-8.3%) fell.

As for industrial products, oil prices caused a drop. Diesel (-15.9%), kerosene (-14.1%) and gasoline (-11.2%) fell. Statistics Korea explained that the drop in international oil prices was reflected. The price of multipurpose vehicles (1.7%), which continued to decline, rose as the government’s individual consumption tax cuts for passenger vehicles decreased since July. Functional cosmetics (7.6%), footwear (6.3%), women’s outerwear (2.9%) and imported cars (4.0%) increased compared to last year.

In the case of electricity, water and gas, city gas (-10.3%), district heating costs (-2.6%) fell and sanitation works (0.3%) increased.

In the services sector, public service (-1.4%) fell and personal service (1.3%) rose, while rent (0.4%) rose. It increased the most since August 2018 (0.5%). Jeonse (0.5%) increased the most in 1 year and 7 months since February (0.6%) last year, and the monthly rent (0.3%) increased the most in 3 years and 10 months since November 2016 ( 0.4%).

In the case of public services, city bus rates (4.9%) and outpatient treatment rates (2.4%) increased, while secondary school payments (-74.4%) and mobile telephony rates (-1.2%) decreased. In terms of personal services, insurance service fees (8.1%), apartment management fees (5.8%), cafeteria meals (2.3%), but school meal expenses (-51.3%) increased. , hospital inspection fees (-9.3%) and household appliance rental fees (-8.4%) and group travel expenses abroad (-5.4%) decreased. As the COVID-19 outbreak dragged on, group travel abroad declined and meal expenses continued to decline due to rotating schools by grade.

Restaurant inflation, which accounts for an important part of service prices, increased 1.0%.

▲ Monthly trend of the exclusion index for agricultural products and oil ⓒ Korea statistics

The ‘Agricultural and Petroleum Products Exclusion Index’ (root price), which was created to identify long-term trends, excluding seasonal factors or inflation due to temporary shocks, increased 0.9% compared to the same period last year. Compared to the previous month, it was also up 0.1%. After rebounding in May (0.5%), it rose 0.1% each month and recovered to the level of the beginning of the year.

The ‘Food and Energy Exclusion Index’, which is the basis of the OECD standard, increased by 0.6% over last year. The growth rate has slowed since February (0.5%), but has increased for four consecutive months since June (0.2%).
The life price index, which was created from 141 items that have a large percentage of expenses and buy frequently to determine the price received, increased 0.9% from last year. Food (5.2%) rose, while non-food (-1.5%) fell.

The fresh food index was up 21.5% from the previous year. Fresh fish and seafood (6.8%), fresh vegetables (34.9%) and fresh fruits (16.1%) rose.

In terms of regional fluctuation rates, Jeonnam (1.4%), Incheon / Gyeonggi / Chungnam (1.2%), Gyeongnam (1.1%), Seoul / Gangwon / Jeonbuk (0.9%), Daejeon / Chungbuk (0.8%), Daegu (0.7%), Gwangju, Ulsan, Gyeongbuk, Jeju (0.6%) and Busan (0.3%), all cities and provinces of the country increased over the year past.

▲ Announcement of the consumer price trend for September. Yonhap News