Europe inflation 7% US 4.7% Korea 3.7% core inflation continues

Eurostat, the European Union's statistical office, announced on the 2nd that the consumer price index (GDP) in the euro area, including Germany and France, rose 7.0% year-on-year in April, and the Bank of Korea announced that core inflation would continue to rise. .
The rate of increase in inflation narrowed from the peak in October of last year to 6.9% in March this year, but turned to an expansion for the first time in six months, showing that inflation is continuing.
The biggest driver of inflation in Europe was growth in food, alcohol and tobacco, at 13.6%, which has slowed slightly since March but maintained high double-digit growth rates.
Energy prices, such as electricity and gas, which sparked initial inflation in Europe, held steady at 2.5% due to stabilization in resource prices that surged following the Russian invasion of Ukraine.
Inflation in European countries rose 7.6% in Germany, 6.9% in France and 8.8% in Italy.
On the other hand, inflation in the US shows signs of slowing, but costs continue to rise rapidly after eliminating volatile food and fuel.
Regarding US inflation, the New York Times said, “Core inflation, excluding highly volatile food and fuel inflation, has slowed slightly but remained high at 5.6%.” It shows that it can be done,” he said on the 2nd.
On Europe's high core inflation, the Associated Press writes, "The slight decline in food inflation is good news, but economists say it's partly of a statistical nature, as the current pre-inflation low figure is out of year-over-year comparisons." The same goes for energy costs,” he said on the 2nd.
US inflation, excluding food and fuel prices, was up 4.6% from the previous figure in March and up 4.7% year over year.
"These data provide further evidence that while inflation is easing, the process is still bumpy and may take a long time to fully progress," the NYT said.
Korea's April consumer price inflation rate was 3.7%, down 0.5%p from the previous month (4.2%), but the core inflation rate excluding food and energy was 4.0%, the same as the previous month.
The Bank of Korea announced on the 2nd that "the rate of increase in core inflation will continue to slow down slower than consumer prices for the time being."
Lee Jeong-ik, head of the inflation trend team at the Bank of Korea, said in a presentation on the evaluation of core inflationary pressures in the Korean labor market on the 25th of last month, “As a result of comparing the core inflationary pressures in the Korean and US labor markets through the estimation of the Phillips curve, it was found that the US is much larger than Korea.” “The explanatory power of the supply-demand imbalance in Korea’s labor market for the rate of increase in core service prices (excluding rent) is 16.7%, which is less than half of that in the United States (36.6%),” he said.
Team leader Lee said, “In April, consumer price inflation will fall further and core prices, excluding food and energy, will not fall significantly, so core inflation could exceed consumer price inflation, as in the US.” said.
In the case of Korea, he evaluated that the cost increase pressure accumulated from the rise in import prices since 2021 is greater than that in the United States. It reached 41.7%,” he said.
Most of Korea's rate of increase is due to the rise in energy raw material prices. In Korea, 19.0%p of the monthly average of 26.5% of the increase in import prices last year was attributable to the increase in energy raw material prices, while in the United States, it remained at 7.8%p. If international oil prices rose by 10%p, In the United States, the impact on core products and services lasted for about a year, while in Korea, it was reflected over two years.

Unlike Japan, the US, EU, and Japan, Korea's consumer price index was designed to be 20-30% lower on average by excluding the cost of own housing from the price index.