Consumer prices grew at the fastest pace in ten years this year, reflecting rising global prices for raw materials and recovery for demand.
According to data from Statistics Korea on Friday, consumer prices expanded two-point-five percent on-year in 2021, compared to on-year gains below one percent since 2019. The latest jump is the biggest since a four-percent growth in 2011.
An official from the state agency cited rising prices of oil products, processed foods, and farm goods behind the latest increase.
The price index for 141 daily necessities climbed three-point-two percent on-year, the fastest gain since 2011. Core inflation, excluding volatile food and oil prices, rose one-point-eight percent this year, the fastest increase since 2015.
First Vice Finance Minister Lee Eog-weon forecast price pressure to continue to weigh on the economy in the first half of next year due to rising oil prices and the base effect, before inflation begins to slow in the second half.
The vice minister, however, cast concerns over uncertainties stemming from the current COVID-19 situation, the omicron variant and global supply disruptions.