In this file photo, a shopper browses products at a supermarket in Seoul on May 2, 2023. (Image courtesy of Yonhap)
SEOUL, Nov. 28 (Korea Bizwire) — South Korea’s consumer sentiment fell for the fourth straight month in November amid woes over an economic slowdown and high rates, a central bank poll showed Tuesday.
The composite consumer sentiment index stood at 97.2 in November, down from 98.1 the previous month, marking the lowest since April this year, when the comparable figure was 95.1, according to the survey conducted by the Bank of Korea. (BOK).
A reading below 100 means pessimists outnumber optimists.
The central bank said consumer sentiment fell amid protracted monetary tightening and waning economic recovery momentum.
Inflation expectations remained flat in November compared to the previous month amid a downward trend in consumer prices, the survey showed.
This month, ordinary people expect consumer prices to rise 3.4 percent for the year ahead, unchanged from the previous month’s 3.4 percent.
The figures are closely watched, as their upward move could cause businesses to raise prices and people to ask for pay raises, thereby resulting in more upward pressure on inflation going forward.
South Korea’s inflation grew at a faster pace of 3.8 percent in October, staying above 3 percent for the third consecutive month, due to higher prices of energy and farm goods.
It is the third month in a row that the annual price growth has picked up pace.
But oil prices have been stabilizing in the face of the Israel-Hamas war, possibly helping inflation ease down the road, a development that supports the central bank’s rate freeze.
The BOK also has predicted inflationary pressure will build up down the road, with inflation expected to stay over 3 percent around the end of the year, far higher than its target rate of 2 percent.
This week, the bank is widely expected to hold its key interest rate steady at 3.5 percent for the seventh straight time amid a slowdown in growth and rising household debts.
The rate freeze comes after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.
(Yonhap)
