Korean consumer confidence dips, inflation expectations highest in 9 yrs

[Photo by Yonhap]

Consumer sentiment in South Korea continued to deteriorate in August after turning sour sharply for the first time this year in July in the face of the worst Covid-19 outbreak that placed the country in de facto lockdown.

The composite consumer sentiment index (CCSI) for August stood at 102.5, down 0.7 point from the previous month, according to the data from the Bank of Korea on Tuesday. It fell for two consecutive months since July, although the pace of deterioration softened after a 7.1-point on-month dip in July.

The reading, however, remains above 100, meaning there are still more people optimistic about the economy than pessimistic.

The number of daily Covid-19 cases still stays in the four-digit number, but the fall in the index slightly slowed down compared with the pace in July as consumers had become less fearful over the impact of Covid—19 spread and immune to rigorous mitigation mandates, said the central bank.

The index measuring consumer confidence in future economic outlook dipped 2 points to 90. Readings for consumer view on current economic conditions also shrank 5 points to 77, and those on future spending down 1 point to 107.

Consumer expectations on future household income improved 1 point to 99, with those on future and current state of living remaining unchanged from last month at 96 and 91, respectively.

Outlook on job opportunities dropped 1 point to 86, and expectations on household debt conditions also fell 1 point to 99.

The index measuring expectations for inflation added 2 points to 149, reaching the highest level since March 2012.

Outlook on housing prices and interest rate going up stayed unchanged from last month at 129 and 126, respectively.

Consumers¡¯ perceived inflation over the past year edged up 0.1 percentage point to 2.4 percent.

Expected inflation for the following year also went up 0.1 percentage point to 2.4 percent, the highest in 32 months.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]