Inflation might rise in 2nd half

Prices for raw materials and intermediary products, which offer a prelude to consumer price increases, rose substantially in June, raising concerns tat consumer prices might soar during the second half.

The Bank of Korea announced July 17 that there was an upward price trend in June for goods in accordance with their processing stage. It showed that the prices of imported raw materials, led by crude oil and liquefied natural gas, have increased 6.5% from the previous month, marking a second consecutive month of hikes. It represented a 22.3% increase compared with the same month of a year ago.

The price of intermediary goods rose 1.0% in June, or 5.3% up from the previous year. In this connection, June`s price index for raw materials and intermediary products rose by 1.7% from the month before.