SEOUL, March 15 (Korea Bizwire) — Impacted by high interest rates, high inflation and a stagnant job market, South Korea’s consumption has been on a downward trend since the autumn of 2022.
According to data from Statistics Korea, the nation’s seasonally adjusted retail sales index stood at 103.9 in January, down 5.03 percentage points compared to August last year.
Among semi-durable goods, clothing items showed the most visible decline in sales. The retail sales index for clothing items plunged by 7.6 percent during the period from last autumn to January.
After registering year to year growth of 5.5 percent in November last year, the inflation rate for clothes and shoes remained above 5 percent, reaching 5.8 percent in February.
During the same period, the retail sales index for food & beverage items plunged by 9.6 percent. In particular, the index slipped below 100 in January, reaching 97.2.
The production index for food, accommodation and services declined by about 4 percent during the same period, indicating that local consumers not only reduced cooking at home but were also spending less overall on food.
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