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There are several analyzes about the continued rise in prices.

Some say that competitively released money is fueling inflation, while others say that the economy, which has been sinking so far, is an early sign of recovery.



Reporter Lee Seong-hoon pointed out.



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Raw material prices have soared since the second half of last year.



After Corona 19, the massive liquidity that governments poured out as they started to boost the economy, expectations from vaccine supply, and China's faster-than-expected economic recovery had a complex impact.



In the process of overcoming the global financial crisis in 2008, analysis has poured out that reminiscent of the'supercycle' in which astronomical funds were released and the price of crude oil rose by 100 dollars per barrel.



[Choi Jin-young / Researcher at Ebest Investment & Securities: From last year, the raw material cycle has begun to progress positively.

Until the first half of this year, we are still seeing it positively.]



There are concerns that inflation could be hit before the economy recovers.



It is a scenario in which the economic bubble collapses if the money is too loose and the currency value falls, conversely, the asset market overheats, and if it leads to an interest rate hike to prevent this.



In fact, U.S. Treasury yields are clearly rising to pre-Covid-19 levels.



However, the analysis that the current raw material price rise is a phenomenon occurring in the early phase of the economic recovery is more prevalent.



Inflation pressures are not a level of concern, as prices have been low for a long time, purchasing power has fallen a lot, and employment and consumption are recovering slowly.



[Young-moo Cho/Research Fellow, LG Economic Research Institute: Isn't it a little difficult for the overall inflation to rise, raising the prices of products and services as overall demand increases?

.]



However, as countries are competing to increase employment and boost consumption, there are voices that they should pay attention to risk management.



(Video Editing: Choi Jin-hwa)



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