Contrary to the US media that the UK economy fell into a 'recession' due to the blow to household spending by inflation, Korean securities firms diagnosed it as 'a rebound after the peak of inflation'.
The Wall Street Journal reported that the UK economy "heralded a tough economic period expected to contract in the second quarter and plunge into a prolonged recession" as households cut spending amid rising inflation and the government's COVID-19 containment program curtailed. reported on the 13th.
The UK's National Statistical Office said on Monday that gross domestic product, a broad measure of goods and services produced by the economy, fell 0.1 per cent in the three months to June.
The WSJ reported a recession, with economists forecasting a 0.2% decline in output after the UK economy grew by 0.8% in the first quarter.
Kim Ji-san, head of research center at Kiwoom Securities, assessed to Yonhap News on the 11th that conditions for inflation peak out for the US consumer price index (CPI) in July.
Regarding the outlook for the KOSPI's rise, Kim said, "There is a growing possibility that the bear market rally will continue until the Federal Open Market Committee (FOMC) in September. The U.S. Department of Labor said on the 11th that "the producer price index, which generally reflects the economy's supply conditions, rose 9.8% in July, the smallest annual increase since the 8.9% increase in October 2021.
US producer prices rose 11.3% in June from a year earlier.
Korean securities firms' diagnosis relies on US indicators and is based on the US price index and the Fed's prediction of interest rate hikes.
“It is true that inflation has passed its peak, but it is still high,” Kim said to Yonhap News. “It is important to pay attention to how quickly inflation will stabilize downward. "The UK's annual inflation rate rose to its highest level in 40 years, outpacing increasingly rapid wage growth, weakening the country's economic outlook during the political vacuum," the WSJ said on July 31. did.
The UK Statistical Office showed that consumer prices rose 9.4% in June compared to a year earlier, the highest inflation rate since 1982, when the hard-line remuneration was at its peak.
The UK's highest inflation in June was up from 9.1% in May, which marks the fastest rise in economic prices in the G7 since global oversupply began early last year.
In the early 1980s, the Conservative Thatcherism of the British Conservative Party formed a double wagon with the Reagannomics of the US Republican Party to establish a hard-line conservative system that heightened international tensions through supply superiority.
After the resignation of the Republican Party in the United States, the Conservative Party government in the United Kingdom withdrew from the Johnson premiership due to a mismatch between the Democratic Party's Biden administration and attempts to build a hard-line conservative system, causing hyperinflation during the political vacuum.
The Yun Suk-Yeol Regime has similar symptoms to the UK as it is transferring inflationary pressure to households by adopting Reagannomics' strategy to overcome the recession caused by oversupply based on the British Thatcherism's union attack strategy.
Korea's consumer price index of 108.74 in July rose 6.3% from the same month of the previous year, the highest rate of increase in 23 years and 8 months after 6.8% in November 1998 during the Asian financial crisis.
The consumer price inflation rate in July was 6% or more for two consecutive months from a 6.0% increase in June, and it is also the first time in 23 years and 8 months since October (7.2%) and November 1998.
Prior to Korea's 1998 financial crisis, the British pound was attacked by hedge funds, signaling the signs of an international financial crisis.