Food and transportation prices hit 10-year high in 2021
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Prices of transportation and food and non-alcoholic beverages posted record-high increases with 6.3 percent and 5.9 percent, respectively. The hikes are attributable to rising prices in agricultural products, processed food, and vehicle fuels including gasoline, diesel, and liquefied natural gas.
Lodging services added merely 0.5 percent, but food services rose by 2.8 percent from a year ago.
As there is a limit to reducing food and vehicle fuel consumption, consumers¡¯ sentiment on those prices hikes is more intense.
In contrast, health and communication prices fell 0.1 percent and 0.9 percent, respectively. Prices of alcoholic beverages, entertainment, and education also fell slightly due to the impact from social distancing rules amid the pandemic.
Although the government has implemented various measures to tame the prices, the increasing trend is likely to continue for the time being due to global supply chain bottlenecks and energy price rises. The Bank of Korea predicted that domestic prices would go up amid international supply chain challenges.
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