The Highest Increase in Consumer Price Index Since the Korean Financial Crisis of 1998

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The consumer price index rose 6% in June 2022 from a year ago, the highest increase since November 1998 (6.8%) when Korea had suffered from a financial crisis as international oil and food prices continued to remain high and demand-side pressure increased due to the lifting of social distancing rules.

The living price index, which represents the perceived cost of living, rose 7.4% from a year ago, which is also the highest increase (10.4%) since the Korean financial crisis of 1998.

As Korea starts the rainy season with rising temperatures, prices of fruits and vegetables are soaring too. Prices of some vegetables have already more than doubled in a week, such as lettuce and cucumber.

The price of lettuce, for example, was KRW 29,760 per 4kg last week (June 27), but the price has increased to KRW 65,660 per 4kg this week, according to Korea Agricultural Marketing Information Service (KAMIS).