Signs of inflation
Authorities should remain vigilant of looming price spiral
The signs of inflation are alarming. According to Statistics Korea, the consumer price index rose 1.5 percent year-on-year in March, marking the largest gain in 14 months since January last year. Prices of agricultural, livestock and fisheries products, which have spearheaded the recent price rise by soaring 16.2 percent in February, jumped 13.7 percent in March. The upward trend slowed down a little but remained far from stabilizing.
Industrial product and service prices also inched up 0.7 percent year-on-year, pointing to upward price pressures across the board. Nothing shows this better than the 1 percent increase in core inflation, which excludes food and oil prices that fluctuate wildly according to seasonal and external factors. The figure has hovered between 0.7 percent and 0.9 percent over the past two years. By most appearances, it is difficult to dismiss the ongoing trend as a temporary pheno
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