S. Korea's producer prices rise all-time high in May
Updated: 2022-06-24 10:15:48 KST
People here in South Korea are feeling the high inflation, especially at the grocery store.
"As a family of five, around 150 U.S. dollars was enough to buy a week's worth of groceries. But prices have been rising so much these days that even 230 dollars is not enough."
Consumer prices have been rising so much, especially meat, because of rising producer prices.
The Bank of Korea said Thursday that in May, producer prices jumped 9.7 percent.
Month-on-month, the producer price index in May was up half a percent from April to 119.two-four, an all-time high.
The figure's been rising every month so far this year.
The surge was driven by livestock products, up by almost 7 percent.
The price of pork rose almost 22 percent, and eggs were up 5 percent.
As an extension of the oil price surge, petroleum products went up by almost 6 percent.
A rise in producer prices will generally mean that higher prices are ahead for consumers.
"With producer prices increasing, consumer prices can also rise. Prices are increasing for necessities including imported food products and livestock products. These will likely lead to unstable inflation, which has also been driven by the weakening Korean currency."
The same day, the Bank of Korea emphasized the need to keep prices in check.
Senior Deputy Governor Lee Seung-heon , said the BOK should focus on monetary policy to prevent a rise in inflation expectations, which would make the problem worse.
Experts say the continued rise in prices and the Bank of Korea's determination to stop it means the BOK will likely raise rates again next month by another so-called "big step" of 50 basis points.
Shin Ha-young, Arirang News.