The cost of daily necessities under government watch has increased at a slower pace in recent months with low prices on imported raw materials and an abundant supply of agricultural and fishery goods.
According to Statistics Korea on Thursday, the prices of 52 basic goods and services frequently consumed by low-income earners, or "MB" items, rose 0.8 percent in October from a year earlier, lower than the overall consumer price growth of 2 percent.
But a year ago, they jumped 5.3 percent year-on-year, with the overall inflation increasing at 4.8 percent.
In March last year, President Lee Myung-bak instructed Cabinet ministers to make a list of the items that are most frequently purchased by local families for the monitoring of their prices to help ease the financial burden on households.
The government selected 52 daily necessities whose prices are monitored and controlled in a bid to help stabilize the livelihood of the working class in the wake of surging global inflation.
They were selected based on analysis of the shopping and spending habits of households making 2.47 million won or less on average each month.
Wheat, ramyeon, Korean cabbage, radish, tofu, garlic, red pepper paste, vegetable oil, eggs, apples, snacks, detergent, gasoline, housing rent, subway and bus fare, cram school tuition, shampoo and daycare center fees were included.
Before the global credit crunch hit the nation hard in the fourth quarter of 2008, the costs of necessities soared on surging prices of crude oil and other imported commodities amid increasing demand from China and other emerging economies, coupled with speculative demand.
But in the aftermath of the international financial market debacle and following the economic slump, the price growth has slowed on falling demand.
By item, the price of rice expanded 4.7 percent from the same month of 2008, down from 7.8 percent in October 2008, while that of wheat flour fell 10.4 percent, compared with a 44.2-percent increase a year ago.
But the prices of some vegetables continue to head upward, with the retail costs of green onions and Chinese cabbage surging 55.3 percent and 24.2 percent last month from the previous year, respectively.
The prices of sugar and cooking oil increased over 20 percent during the one-year period.
(Source: The Korea Times)
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