Expected inflation rate for next 12 months reaches 9-year high of 3.1%

소비자심리지수 두달째 상승...물가상승전망 9년만에 최고

Consumers in South Korea are showing levels of concern, as public expectation over inflation rates has hit a 9 year high.
Despite this, for a second month in a row, local consumers are apparently optimistic about the overall South Korean economy.
Lee Shi-hoo reports.

South Korean consumers are anticipating a further inflation surge.
That outlook is based on research conducted by the Bank of Korea on 2-thousand-5-hundred households in the country.
The Bank of Korea said Wednesday that April's expected inflation rate stood at 3-point-1 percent,... up point-2 percent compared to the previous month.
That's the highest it has been since April of 2013.
The central bank attributed the rise to soaring consumer and producer prices and the supply disruption caused by the ongoing war in Ukraine.

But consumers are apparently optimistic about the economy for a second month in a row,... with the lifting of social distancing rules.
The central bank also said that its Composite Consumer Sentiment Index in April stood at 103-point-eight,... increasing point-six percent month-on-month.
A reading above 100 means that there is more optimism regarding the economy.
Experts say it is likely that the trend will continue to rise.

With the lifting of COVID-19 restrictions, the spending sentiment that had previously shrunk will be revived. It's unclear whether a new COVID-19 variant will emerge or not, but for now, it's expected that the Composite Consumer Sentiment Index will rise more and more.

As for real estate, the housing price index rose 10 points from the previous month to one-hundred-14 as more people anticipate increase in property prices.
Also, the interest rate index climbed 5 points from the previous month, as more people predict the rate to go up in the coming months.
Concerns over inflation and interest rates have contributed to the rise as the new BOK governor Rhee Chang-yong hinted continued interest rate raise to tame high inflation.
The Bank of Korea earlier this month hiked its key interest rate to one-point-five percent,… marking the fourth rate raise since a record low of point-five percent in 2020.
Lee Shi-hoo, Arirang News

#Bank_of_Korea #economy #inflation_rate

2022-04-27, 12:00 (KST)