| View previous topic :: View next topic |
| Author |
Message |
mrsquirrel
Joined: 13 Dec 2006
|
 Posted: Tue Jul 01, 2008 4:55 am Post subject: South Korea's Consumer Prices Rise Most in Decade |
 |
|
| Quote: |
South Korea's Consumer Prices Rise Most in Decade (Update1)
By William Sim
Enlarge Image/Details
July 1 (Bloomberg) -- South Korea's consumer prices rose by the most in almost 10 years in June, underlying speculation the central bank may raise interest rates this year.
The consumer price index climbed 5.5 percent from a year earlier, accelerating from May's 4.9 percent gain, the statistics office said in Gwacheon today. That was higher than the 5.4 percent median estimate of 18 economists surveyed by Bloomberg News. Prices advanced 0.6 percent from a month ago.
The central bank today forecast inflation over the whole of 2008 will quicken to a decade high as fuel and food costs surge. Oil prices have doubled in the past year, pushing inflation beyond Asian central banks' comfort zones and prompting policy makers in Indonesia, the Philippines, Taiwan and India to raise interest rates even as global growth slows.
``The inflation outlook is taking a turn for the worse, raising the risk that the central bank may increase borrowing costs,'' said Kim Jong Sung, a fund manger at Daishin Securities Co. in Seoul.
Yields on the benchmark five-year government bond rose 1 basis point to 5.97 percent at 2:06 p.m. in Seoul. They've risen from 4.92 percent on April 10, this year's low. The won rose 0.1 percent to 1045.35 against the dollar.
Core inflation, which strips out oil and food costs, gained 0.5 percent from May and 4.3 percent from a year earlier, the fastest since November 1998. The rate probably rose as the won has weakened 12 percent this year.
``A weaker won makes all imports more expensive,'' said Lim Ji Won, senior economist at JPMorgan Chase & Co. in Seoul. ``Rising oil prices contribute to weakening the local currency as it hurts the nation's current-account balance.''
Current Account
The central bank today said the current-account deficit for 2008 would widen to $9 billion from $3 billion estimated in December. South Korea imports 97 percent of its energy.
Consumer prices will climb 4.8 percent in 2008, the central bank said in a half-yearly report today, higher than its December prediction of 3.3 percent.
That would breach Governor Lee Seong Tae's target of keeping inflation between 2.5 percent and 3.5 percent, on average, for the three years to 2009.
Lee and his colleagues left South Korea's benchmark rate unchanged at a seven-year high of 5 percent for a 10th straight month in June. The board next meets on July 10.
``It seems important to stabilize prices as high oil prices and inflation are also the factors contributing to cooling domestic demand,'' Kim Jae Chun, head of the central bank's research department, told reporters today.
Slowing Economic Growth
Economic growth will ease to 4.6 percent this year from 5 percent in 2007, the Bank of Korea also forecast, highlighting the challenge facing global policy makers as they balance slowing expansions against a pickup in inflation.
The Bank for International Settlements said yesterday that central banks should raise interest rates even as economic growth cools because taming inflation is the more immediate problem.
``The central bank is at a crossroad whether to raise or lower rates,'' said Chun Chong Woo, an economist at SC First Bank Korea Ltd. in Seoul. South Korea's policy makers may ``turn hawkish this year until inflation eases.''
To contact the reporter on this story: William Sim in Seoul at [email protected]
Last Updated: July 1, 2008 01:11 EDT |
|
|
| Back to top |
|
 |
citizen erased
Joined: 06 Apr 2008
|
| Posted: Tue Jul 01, 2008 6:35 am Post subject: |
|
|
| wow, a fellow Bloomberg reader. this kind of thing tends to raise interest rates and currency values so everyone on here complaining about the value of the won can keep that in mind. |
|
| Back to top |
|
|
mrsquirrel
Joined: 13 Dec 2006
|
| Posted: Tue Jul 01, 2008 1:40 pm Post subject: |
|
|
Interesting isn't it.
That a thread about something which affects all teachers here gets no replies.
Yet a thread where somebody has left a hamster on the doorstep gets two pages of it.
Living in Korea, living the dream. |
|
| Back to top |
|
|
Zenas
Joined: 17 May 2008
|
| Posted: Tue Jul 01, 2008 1:48 pm Post subject: |
|
|
Most people's minds have a way of blocking out un-pleasantries.
A defensive mechanism that can be fatal if followed long enough.
Hamsters left at the doorstep is something the mind can entertain w/o much internal conflict, cognitive dissonance does not come into play.
Ever notice how, when the conversation at a table turns to difficult subjects, many people start to get nervous, and many 'remember' they have other things they have to do? Or, if they stay, they begin to attack the bringer of the bad news they don't want to hear or disagree with?
________________________________ |
|
| Back to top |
|
|
mrsquirrel
Joined: 13 Dec 2006
|
| Posted: Tue Jul 01, 2008 1:58 pm Post subject: |
|
|
| Zenas wrote: |
Most people's minds have a way of blocking out un-pleasantries.
A defensive mechanism that can be fatal if followed long enough.
Hamsters left at the doorstep is something the mind can entertain w/o much internal conflict, cognitive dissonance does not come into play.
Ever notice how, when the conversation at a table turns to difficult subjects, many people start to get nervous, and many 'remember' they have other things they have to do? Or, if they stay, they begin to attack the bringer of the bad news they don't want to hear or disagree with?
________________________________ |
Anyway.
Might be a good idea to start a price watch thread. Get some real time data on the changing costs over the next few months.
Prices from Emart et al plus local corner shop type places. |
|
| Back to top |
|
|
Darkness
Joined: 12 Oct 2006
|
| Posted: Tue Jul 01, 2008 2:33 pm Post subject: |
|
|
How are interests rates, and the price of the won in relation?
If interest rates go up, will the won go to 1050:1 won:cdn.....grrrr, will it ever get around par again!! |
|
| Back to top |
|
|
Ramen
Joined: 15 Apr 2008
|
| Posted: Tue Jul 01, 2008 2:34 pm Post subject: |
|
|
| Darkness wrote: |
How are interests rates, and the price of the won in relation?
If interest rates go up, will the won go to 1050:1 won:cdn.....grrrr, will it ever get around par again!! |
Won is already at 1050.
I'm doing a runner when won hits 1200.  |
|
| Back to top |
|
|
Darkness
Joined: 12 Oct 2006
|
| Posted: Tue Jul 01, 2008 2:35 pm Post subject: |
|
|
| last I saw it was 1030:1...1050:1....FUHK ME!!! |
|
| Back to top |
|
|
Bigfeet
Joined: 29 May 2008
Location: Grrrrr.....
|
| Posted: Tue Jul 01, 2008 2:59 pm Post subject: |
|
|
| mrsquirrel wrote: |
Interesting isn't it.
That a thread about something which affects all teachers here gets no replies.
Yet a thread where somebody has left a hamster on the doorstep gets two pages of it.
Living in Korea, living the dream. |
Maybe we just don't like replying to you? |
|
| Back to top |
|
|
mrsquirrel
Joined: 13 Dec 2006
|
| Posted: Tue Jul 01, 2008 3:26 pm Post subject: |
|
|
| Bigfeet wrote: |
| mrsquirrel wrote: |
Interesting isn't it.
That a thread about something which affects all teachers here gets no replies.
Yet a thread where somebody has left a hamster on the doorstep gets two pages of it.
Living in Korea, living the dream. |
Maybe we just don't like replying to you? |
I could understand that. |
|
| Back to top |
|
|
JustJohn
Joined: 18 Oct 2007
Location: Your computer screen
|
| Posted: Tue Jul 01, 2008 4:05 pm Post subject: |
|
|
| mrsquirrel wrote: |
Interesting isn't it.
That a thread about something which affects all teachers here gets no replies.
Yet a thread where somebody has left a hamster on the doorstep gets two pages of it.
Living in Korea, living the dream. |
Allow me to assist. It's because the article is long and boring. Hamsters are short and entertaining.
If you provided a short summary of how it will affect teachers I'm sure it would have gotten a lot more response. |
|
| Back to top |
|
|
Zutronius
Joined: 16 Apr 2007
Location: Suncheon
|
| Posted: Tue Jul 01, 2008 4:07 pm Post subject: |
|
|
| Prices in the dollar store rose at least 100 won on all products effective yesterday. I'll keep an eye on food prices as well. |
|
| Back to top |
|
|
mrsquirrel
Joined: 13 Dec 2006
|
| Posted: Tue Jul 01, 2008 4:11 pm Post subject: |
|
|
| JustJohn wrote: |
It's because the article is long and boring.
|
300 words is long?
Oh dear.
Do your part and go buy a loaf of bread and a litre of milk at your closest shop and report back. |
|
| Back to top |
|
|
JustJohn
Joined: 18 Oct 2007
Location: Your computer screen
|
| Posted: Tue Jul 01, 2008 4:17 pm Post subject: |
|
|
Do a survey that asks how many people read it and then how many people would have read it had it been a fraction of the length. (Or would have read a summary in the manner I suggested.)
I'll throw out a wild guess that you'd get something like 5% and 80%.
I'm just trying to be helpful. Seriously. I'm sure other people can back me up on this. |
|
| Back to top |
|
|
mrsquirrel
Joined: 13 Dec 2006
|
| Posted: Tue Jul 01, 2008 4:19 pm Post subject: |
|
|
Milk - Eggs - Bread
It's a sad state of affairs if teachers who are being directly affected by the price rises can't manage to read a short article.
Anyway.
Enough cud chewing
Prices are needed.
....edit
Any whoremongers out there need to post the prices of the ladies as well. That is always a good indication of how things are going. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
