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With crown 19, the price of vegetables increased by more than 10% last month as house food increased instead of eating out. The general consumer inflation rate was 0.1%. In photo 4 you will find a large-scale agricultural produce corner in Seoul. [연합뉴스]
The National Statistics Office said on 4 that the inflation rate of consumer prices was only 0.1% last year (from the same period last year). It was the lowest in six months since last October (0%). The main reason for the low prices was the decrease in international oil prices due to the new coronavirus infection (Corona19) and the decrease in food demand due to the “reserve”. Excluding agricultural products and oil, the source price inflation rate was 0.3% last month, the lowest in 21 years.
Poor consumption like eating out due to distance.
Oil prices overlapped and prices rose 0.1% in April
“It is difficult to bounce V in a short period of time”
Strategy and Finance Minister Kim Yong-beom said at the macroeconomic and financial conference that day, “The real economy, like the real economy recession and unemployment, is starting now.” “The temporary pause is just the end of the beginning, and it’s hard to see it as the beginning of the real end,” said Kim. . He added: “Now is the time when we need strong” economic defense “to effectively respond to the economic crisis that will take off and lead the post-crown era.”
Growth rate of consumer prices. Chart = Reporter Jaemin Shin
According to the National Statistics Office, the prices of services increased only 0.2% last month. In particular, the rate of increase in food prices was 0.8% and remained at 0% for the fourth consecutive month. Hyung-Jun Ahn, Korea Economic Statistics Deliberation Statistical Officer, explained: “The change in consumption patterns in Corona 19 had an effect on prices.
Source inflation rate. Graphics = Kim Young-hee [email protected]
As consumers refrain from going out and staying at home, the price of agricultural, livestock and aquatic products increased by 1.8%. Vegetables like cabbage (91.4%) and onion (39.6%) jumped 10.3%, and livestock products such as beef (5.4%), pork (2.6%) and eggs (12.3%) also rose 3.5%. Seafood prices also increased 8.1%. This means that even in low-price situations, the price of food that consumers feel from skin to life is high.
Consumer price trends in April. Chart = Cha Junhong reporter [email protected]
The Bank of Korea explained: “In Korea, the inflation rate is slower (than in other countries) because the supply needs for daily needs and supply chains are not great.” The 70% reduction in the individual consumption tax on automobiles to accelerate consumption was also the cause of the slowdown in inflation. Kang Seong-jin, professor of economics at the University of Korea, said: “Even if Corona 19 returns to sedation, there is no guarantee that a rebound in consumption will appear in a short period of time.”
Concerns about deflation (lower prices in the midst of the recession) due to low growth and low prices again raised their heads. The government is drawing a line first. It is a position to observe unusual low oil prices and the aftermath of Corona 19 more. However, it is an atmosphere that admits that the “V-shaped” bounce, which hits the floor immediately, will be difficult.
Sejong = Reporter Heo Jung-won [email protected]
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