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sojusucks
Joined: 31 May 2008
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 Posted: Mon Nov 01, 2010 2:23 pm Post subject: Produce, fish prices jumped 49% in October |
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Proof of what we've all seen and that's much higher food prices in Korea for more than just cabbage.
http://joongangdaily.joins.com/article/view.asp?aid=2927838
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Produce, fish prices jumped 49% in October
The skyrocketing cost of cabbage, radishes, green onions, tomatoes and garlic led to the fastest year-on increase in Korea�s consumer price index in 20 months in October, raising concerns of inflationary pressure.
Overall prices of fresh produce and fish jumped 49.4 percent from a year before, the biggest rise since 1990 when the government started compiling the data, a government report said yesterday.
To deal with inflationary pressure, the government said yesterday that it intends to expand agricultural supplies by allowing a higher volume of imported goods, including garlic, chili peppers and radishes. The price of gas for cooking and heating was lowered yesterday and liquefied petroleum gas prices will also be reduced.
According to Statistics Korea, the consumer price index shot up 4.1 percent last month from a year before. This is the fastest increase since February 2009 when the index rose by the same figure. The index went up 0.2 percent from September.
The rise was largely attributed to the soaring price of Napa cabbage, which leaped 261.5 percent in October from a year earlier. Radish prices jumped even higher at 275.7 percent, followed by green onions (145.5 percent), tomatoes (115.4 percent) and garlic (102.5 percent).
The government said produce and fish prices were on the decline and overall inflation for the year would not exceed 3 percent.
The retail price of Napa cabbage, the main ingredient in kimchi, started climbing from 6,664 won ($6) on Sept. 15 to 7,184 won on Sept. 20, then to 10,425 won on Oct. 5 before falling to 3,770 won on Oct. 22.
�If the prices of vegetables continue to decline, consumer prices are going to fall this month,� Lee Eok-won, a director of the price policy team at the Ministry of Strategy and Finance, said in a statement.
�Fast economic recovery in the first half of the year led to increases in employment and household income, and this resulted in growing consumer demand,� Deputy Finance Minister Kang Ho-in said, explaining the price hikes. �If inflation falls to around 3 percent in November and December, the overall rate of inflation for the year is likely to be about 3 percent, or even below.�
However, the sharp gain in consumer prices last month is still expected to put pressure on the central bank to consider an interest rate increase when its policy makers meet on Nov. 16.
The Bank of Korea is aiming for a median inflation target of 3 percent with a margin of plus or minus 1 percentage point between 2010 and 2012.
The central bank froze the interest rate at 2.25 percent for the third straight month in October because of the slowing global economic recovery and the local currency�s gain against the dollar.
Meanwhile, the government plans to raise imports of garlic, peppers, onions and radishes and cut tariffs on mackerel and walleye pollock to stabilize prices.
The price of gas for heating and cooking was lowered 4.9 percent yesterday. The price of LPG will be cut by around 1 percent in November.
By Limb Jae-un [[email protected]]
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calicoe
Joined: 23 Dec 2008
Location: South Korea
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| Posted: Mon Nov 01, 2010 2:26 pm Post subject: |
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| Yes! I wasn't following this story, but thought I was going out of my mind by the sudden doubling of price in garlic. Thanks for the confirmation. |
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brickabrack
Joined: 17 May 2010
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| Posted: Mon Nov 01, 2010 3:06 pm Post subject: |
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I highly suspect that price increases were manipulated to eff with peoples' minds. Even before it happened and people were talking about it being a possibility.
Also, the interest rate will increase close to 3%, most definitely. G20 perpetrators are gonna mix things up in this economy. Look for unprecedented inflation in the U.S. for years to come. And, China will have a huge stake in Euro debt. But, the yuan will continue the status quo with very little budging whatsoever.
Gold has no choice but to increase in value to keep up with inflation. |
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Koreadays
Joined: 20 May 2008
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| Posted: Mon Nov 01, 2010 6:28 pm Post subject: |
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Vietnam is the next education boom, I saw jobs posted online 2.2 million won, free flights, housing, pension severance etc..
the kicker is, Vietnam is way cheaper to live than korea, so the saving potential is huge. Korea is gonna wake up to a shock soon when foreigners are choosing Vietnam, China and possible Cambodia for the same money but less expensive living.
CUT OUT THE MIDDLE MAN! basic economics. |
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northway
Joined: 05 Jul 2010
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| Posted: Mon Nov 01, 2010 7:48 pm Post subject: |
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| Koreadays wrote: |
Vietnam is the next education boom, I saw jobs posted online 2.2 million won, free flights, housing, pension severance etc..
the kicker is, Vietnam is way cheaper to live than korea, so the saving potential is huge. Korea is gonna wake up to a shock soon when foreigners are choosing Vietnam, China and possible Cambodia for the same money but less expensive living.
CUT OUT THE MIDDLE MAN! basic economics. |
China's wages are still really low though. I agree that Vietnam has serious potential, but it will be held back quite a bit by the tax rate (20%), though I'm definitely considering going there (open work visas). |
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redaxe
Joined: 01 Dec 2008
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| Posted: Mon Nov 01, 2010 8:00 pm Post subject: |
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| Koreadays wrote: |
Vietnam is the next education boom, I saw jobs posted online 2.2 million won, free flights, housing, pension severance etc..
the kicker is, Vietnam is way cheaper to live than korea, so the saving potential is huge. Korea is gonna wake up to a shock soon when foreigners are choosing Vietnam, China and possible Cambodia for the same money but less expensive living.
CUT OUT THE MIDDLE MAN! basic economics. |
I don't think the extreme bloatedness of the Korean English hagwon industry will ever be replicated again in history, though, as I can't imagine another country being so frantically obsessed and desperate to learn English, yet also struggling and failing so miserably at it.
Enjoy the gold rush while it lasts, folks. Your ESL salaries in Korea are not going to keep up with Korean inflation, and neither are those of the Koreans who pay you your salaries... |
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nathanrutledge
Joined: 01 May 2008
Location: Marakesh
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| Posted: Mon Nov 01, 2010 11:33 pm Post subject: |
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Koreadays is right, it IS basic economics.
Prices for some goods go up, people stop buying those goods and switch to something else, pushing those prices up if the supply cannot keep pace.
Big deal. Poor harvest, high prices. Last year the harvest was really good and no one said a peep about the lower prices then.
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sojusucks
Joined: 31 May 2008
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| Posted: Tue Nov 02, 2010 12:47 am Post subject: |
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This is not new. Different food prices have risen a great deal over the past few years. Look at canned tuna, beef, and chicken.
But 49% in one month?
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Big deal. Poor harvest, high prices. Last year the harvest was really good and no one said a peep about the lower prices then.
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In Korea there are artificial floors on prices, so consumers don't get the full benefit from bumper crops. But consumers are expected to pay through the nose when the harvest goes badly. |
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