Korea's consumer price index soared to 6% last month.

It is the first time in 24 years since the foreign exchange crisis that it recorded the 6% level.

To catch inflation, interest rates are raised, and the Bank of Korea will decide what to do next Wednesday.

Whether to raise 0.5 percentage points all at once, or not this time, considering the economic slowdown and the rising inflation that is expected to continue, is also deepening the question.

Correspondent Jo Ki-ho.


Petroleum products had the biggest impact on the 6% rise in consumer prices in June.

Diesel rose more than 50% from a year ago, gasoline 31.4% and kerosene 72%.

Food prices have also skyrocketed.

Potatoes, Chinese cabbage and grapes rose more than 30%, while imported beef rose by 27% and pork by nearly 20%.

Processed food also added a shock as edible oil jumped 40% and wheat flour jumped 36%.

Service prices have also risen sharply since the lifting of the distance.

The cost of eating out, including chicken and sashimi, increased by 8%, and insurance premiums were also increased by 14%.

When looking at the proportion of each sector in the overall 6% inflation rate, restaurants, various services, and petroleum products accounted for nearly 60%, leading the inflation.

[Eo Woon-seon/Statistics Office Economic Trend Statistical Review Officer: Oil, personal services, and vegetables showed a 0.6% point increase compared to the previous month as the rising trend expanded.]

As a result, the overall consumer price index also decreased in 1998, when the foreign exchange crisis was in place. It was the highest growth rate in 24 years since 6.8% in November.

As the pace is getting faster and faster, from 4% in March and April to 5% in May and 6% in June, the impact on the economy is evaluated to be greater than that of the currency crisis.

In particular, the cost of living, which consists of items frequently bought in daily life, rose to 7.4%, also recording the highest level since the financial crisis.