Korea's inflation woes grow as heat wave drives up food prices
This summer’s prolonged heat wave is pushing up food prices, raising the prospect that a rebound in inflation could be more pronounced than expected in August, according to economists, Sunday. The concern comes as underlying price pressures remain firm, with core inflation picking up in July. Meanwhile, the government’s oil price cap, which has remained in place since March shortly after the U.S.…
An intense summer heat wave is exacerbating Korea's inflation woes, potentially leading to higher inflation than anticipated in August, according to economists. As core inflation surged in July, the weather-driven supply shock adds to existing pressures. The government's oil price cap, implemented since March, further complicates the economic outlook.
July's consumer inflation rate fell to 2.8% for the first time in three months, dipping back into the 2% range. The extreme heat, with temperatures surpassing 40 degrees Celsius in some regions, including parts of Seoul, has disrupted vegetable and meat supplies.
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- Korea's inflation woes grow as heat wave drives up food prices koreatimes.co.kr
