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 ongoing heat wave in Korea is causing food prices to rise, potentially leading to a more significant inflation rebound than anticipated in August, according to economists. The concern arises as underlying price pressures remain robust, with core inflation increasing in July. The government's oil price cap, implemented since March following the U.S.-Israel conflict with Iran, adds another layer of uncertainty to the outlook.
The combination of a weather-induced supply shock and pre-existing inflationary pressures presents a more challenging inflation scenario. July consumer inflation slowed to 2.8 percent, dipping back into the 2 percent range for the first time in three months. However, the severe heat wave gripping the country this summer, with temperatures soaring above 40 degrees Celsius in certain regions, including parts of Seoul, poses a significant risk to food supplies, including vegetables and meat.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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- Korea's inflation woes grow as heat wave drives up food prices koreatimes.co.kr
