Credit: Public domain.
The loose money and supply chain disruption caused by the prolonged pandemic are affecting the South Korean economy, with prices rising across the board. In January 2022, the consumer price index rose by 3.6% compared to January 2021, making it four months in a row that the CPI rose by more than 3% compared to the same period in the previous year.
Food prices were a major driver: the restaurant bill increased by 5.5%, the highest rate of increase in 13 years. The price of agricultural, dairy and seafood products also rose by 6.3%.
Little relief is in sight: the price of gasoline is set to increase in the coming months, and the geopolitical risk involving the military tension in Ukraine would also affect the global grain and fuel market.