Consumer Prices Growing for 4 Months in a Row

Consumer prices are rising by 0.5 to 0.6 percent from the previous month for 4 months in a row.

Korea National Statistical Office (NSO) is predicting that the growing move will be slowed down in the second half of this year, but the consumer prices might jump over the yearly price stabilization goal of 3 to 5 percent.

NSO announced that consumer prices in April rose by 0.6 percent from the previous month, and 2.5 percent comparing to the same month last year.

As a result, consumer prices, which had stood still since Sep. 11 terror, turned to rising trend from January marking 4 months in a row growth by 0.5 to 0.6 percent.

The increase of consumer prices in April was influenced from the jump of crude oil price by 3.4 percent, which raised the price of industrial goods by 1.0 percent. 2.9 percent decrease of Health Insurance charges drew down the public service charges in spite of 8 percent increase of fare of cross-country bus, express bus, and railway.

Rae-Jeong Park ecopark@donga.com