30% increase in electricity price index, 24.5% increase in electricity rate at the highest rate of consumer price inflation

Consumer inflation in January rose 5.2% year-on-year and 0.8% month-on-month, higher than expected by economists, the largest increase since September 2018 during the financial crisis, revealing the prolonged high price regime.

The January price index of the National Statistical Office increased electricity, gas, and water prices by 28.3% from a year ago, driving the overall price index to rise by 0.17%p. %) rose sharply compared to the same period last year, showing the highest rate of increase since statistics were compiled in January 2010.
The government's electricity rate increase rate was announced as a 9.5% increase in January, with a 4,000 won increase for a family of four, resulting in a 0.0155%p increase in the consumer price index.
The government announced a total of 19.3 won hikes three times: 6.9 won in April, 5 won in July, and 7.4 won in October last year, an increase of about 15%.
The National Statistical Office's January consumer price index was 5.2% higher than the same month last year, up from 5.0% in December, and higher than the 5.0% expected by economists.
The consumer price index rose 0.2% month-on-month in December of last year, but rose 0.8% month-on-month in January, so inflation pressure was quite strong.
Reuters News Agency reported on the 2nd that it was announced as 5.2%, the highest in three months, despite an increase of 5.0% in January in a poll.
Consumer price inflation last year was May (5.4%) June (6.0%) July (6.3%) August (5.7%) September (5.6%), October (5.7%) November (5.0%) December (5.0%) to 5.2% again in January this year.
Electricity rates led by the government soared by 29.5%, and city gas (36.2%) and district heating costs (34.0%) rose sharply compared to the same period last year, showing the highest rate of increase since statistics were compiled in January 2010.
Petroleum prices fell by 2.8% compared to the previous month and increased by 5.0% compared to the same month last year. Diesel (15.6%) and kerosene (37.7%) rose, while gasoline (-4.3%) and automotive LPG (-2.4%) prices fell.
Industrial products rose 6.0%, commodity prices rose 6.7% year-on-year, service prices rose 3.8%, and among service prices, public service prices rose 0.8% from the previous month. Agricultural products prices fell 0.2% from a year ago, but vegetable prices rose 5.5% from the previous year and 14.2% from the previous month, soaring 6.2% from the previous month.
As for processed foods, prices rose 10.3%, with bread (14.8%) and snack snacks (14.0%) rising.
Rent rose 1.3% as jeonse (1.8%) and monthly rent (0.7%) rose.

Lee Hwan-seok, Vice Governor of the Bank of Korea, said at the 'Inflation Situation Review Meeting' on the 2nd, "Consumer prices are expected to rise by around 5% this month (February) as well. “The rate of increase in consumer prices in January was slightly higher than the previous month due to the increase in electricity rates and the rise in prices of agricultural and livestock products due to the cold wave, although the rate of increase in petroleum prices was reduced,” he said. At the Open Market Committee (FOMC) on the 1st, the US Federal Reserve decided on the highest level since October 2007 by establishing an annual 4.50-4.75% federal interest rate system with a 0.25%p (25bp) increase in the base rate.

The US Consumer Price Index (CPI) rose 6.5% year-on-year in December, down 0.1% month-on-month, although food prices rose more than 10% over the past year and oil prices rose about 30% over the past month. .

In particular, U.S. retail sales decreased 1.1% month-on-month in December, the largest decrease in 12 months, minimizing interest rate hikes, and in Korea, electricity and city gas rates began to rise sharply led by the government.