The Strategist

Inflation in South Korea exceeds 4% for the first time in a decade

04/05/2022 - 10:31

The annual inflation rate in South Korea was 4.1 percent in March 2022, the highest in a decade, the Ryonhap News Agency reported citing the national statistical office. According to the agency, the increase was caused by energy prices.

Valentin Janiaut
Valentin Janiaut
Experts fear that food prices may continue to rise because of the Ukrainian crisis. At present, a sharp decline in inflation is unlikely, according to the country’s statistical office. 

The prices of oil products in South Korea rose by 31.2% in March compared with the same period last year and by 19.4% in February. In December 2011, inflation reached 4.2%.

Among other things, the rise in inflation was also influenced by the recovery of the global economy after the coronavirus pandemic. According to the forecast of the Central Bank of South Korea, the growth rate of consumer prices will remain above 4% due to increase in the cost of oil and grain, caused by the events in Ukraine.