Regarding inflation, the Bank of Korea said that it will “continue to rise more than 6% for the time being”, while Deputy Prime Minister Choo Kyung-ho announced the “peak in September and October” respectively.
Lee Hwan-seok, Deputy Governor of the Bank of Korea, said, "The rate of increase in the consumer price index has been in the 6% range since June, and it is in line with the expectations of the Monetary Policy Committee last month." The upward trend is expected to continue,” he said on the 2nd.
Eo Yun-seon, deputy director of Statistics Korea, said on the 2nd, "Inflation is unlikely to fall below 6%, but it is unlikely that it will rise to the 7% level."
At the National Assembly on the 1st, Deputy Prime Minister Choo said about the timing of the 'passing of the peak' in the National Assembly, "Unless there is an unexpected external variable, it is predicted that the peak will be around September or October, which is the end of the third quarter or the beginning of the fourth quarter." The governor said at the National Assembly on the 1st, "(Inflation rate) is expected to gradually stabilize after it exceeds 6% and lasts for two to three months."
The inflation rate was 6.3% in July from 6.0% in June, so Governor Lee's remarks in September were 'expected to be below 6%', which conflicts with the forecast of the National Statistical Office.
According to Statistics Korea, consumer prices for goods and services rose 9.0% and 4.0% in July from a year ago, respectively.
In particular, electricity, gas, and water prices rose by 15.7% from the increase in utility rates, so electricity rates (18.2%), city gas (18.3%), and district heating costs (12.5%) were the largest increase ever since statistics were compiled in 2010.
Industrial products rose 8.9% from the previous year, while prices for agricultural, livestock and fishery products rose 7.1%, up 8.5%, and vegetables, up 25.9%.
U.S. home price growth has slowed sharply, CNBC reported on the 1st, citing housing market research firm Black Knight.
The US housing price index rose 17.3% YoY in June, 2 percentage points lower than the 19.3% increase in the previous month, and a sharp drop from 1.19 percentage points during the financial crisis.
"The problem is, even in a strong job market, inflation outpaces wage growth," said Neil Kashkari, governor of the Federal Reserve Bank of Minneapolis, a board member of the Federal Reserve. announced on the 31st.
The Bank of Korea Investigation Bureau announced on the 25th of last month in a report on the 25th of last month that "in a situation of rising inflation, if expected inflation is unstable, the price-wage interaction will be strengthened, and the possibility of the high inflation situation cannot be ruled out."
Yomiuri reported on the 2nd, citing the results of a manufacturer's survey, that the price of food and beverage manufacturers in Japan increased by 2,431 items in August alone and expanded to 6,305 items in October, and is expected to exceed 20,000 items by the end of the year.
In Japan, the price increase directly related to the burden on households was led by a surge in packaging material prices and logistics costs, and the average price increase is expected to be 14% by the end of the year.
The cost of living in Korea, the perceived cost of living, rose 7.9% in July compared to the previous year, the sharpest increase since November 1998 (10.4%).
In July, the price of industrial products rose 8.9% year-on-year for industrial products and 7.1% for agricultural, livestock and fishery products, outpacing the manufacturing industry's inflation rate in July.
The government's price control policy relies heavily on agricultural and livestock products and the decline in international oil prices.