Concerns over consumer price hikes

Amidst steadily rising consumer prices for July, concerns about price hikes are mounting.

Despite somewhat slower gains than last month, prices of daily commodities rose once again, putting a severe dent in working-class family budgets.

According to a report on price trends in July released by the Ministry of Finance and Economy Monday, consumer prices rose by 0.3% from a month before and 2.9% from one year ago.

The rising consumer prices were primarily due to hikes in inter-city bus fares in Seoul and Busan, coupled with soaring costs of agro-fishery and livestock products in the aftermath of extremely high temperature and heavy rainfalls.

By category, public fares were up 1.3% from a month ago as a result of bus fare hikes, agro-fishery and livestock products rose 0.7% and house rent jumped 0.2%.

The MOFE announced that average consumer prices during the January-July period inched up 1.7% from the same period last year, indicating a stable price trend. However, the price index for living recorded 131.9 (based on the 1995 index as 100), up 0.5% from a month before and 4.8% from a year earlier. Year-on-year price growth has hit a record high since December 1998.