2024-04-22 09:23:51
Nomura Securities price analysis for G7, entire Eurozone, Korea, Taiwan, etc.
High proportion of crops grown in facilities, such as homes, that consume a lot of energy, such as oil.
Korea is heavily dependent on foreign energy and is vulnerable to energy inflation.
Last month, the price inflation rate for apples was 71.0% and that for pears was 61.1%. Yunhap news
A survey showed that fruit and vegetable prices in Korea, which have driven the rise in prices of food items such as apples, pears and green onions, have increased the most this year compared to other countries.
On the 22nd, global investment bank (IB) Nomura Securities released the average monthly increase rate of the consumer price index (CPI) for the G7 (United States, Japan, United Kingdom, Canada , Germany, France, Italy), the entire Eurozone, Taiwan and Korea from January to March this year For comparison, the fruit price inflation rate in Korea from January to March was 36, 9% on average per month, almost 2.5 times higher than that of Taiwan (14.7%).
Fruit prices also increased significantly during the same period in Italy (11.0%), Japan (9.6%) and Germany (7.4%), but only by around 10%. .
The growth rate of vegetables was also highest in Korea (10.7%), followed by Italy (9.3%) and the United Kingdom (7.3%). In the United States, where fresh fruits and vegetables were advertised as a single product, the monthly rate of increase was only 1.3% on average this year.
Some analysis indicates that the growing trend of linking agricultural commodity prices to energy prices has had an impact due to the large proportion of local fresh fruits and vegetables grown in facilities such as homes. Korea is absolutely dependent on foreign energy and oil imports are concentrated in the Middle East. As international oil price volatility increases, it is likely that energy and agricultural commodity prices will become more difficult to manage.
Korea’s energy inflation (price rise) is relatively more volatile than that of major countries. The inflation rate of energy consumer prices, calculated by Nomura Securities as a weighted average of energy-related items (electricity, gas prices, fuel costs, etc.), was on average 1 .1% per month from January to March, ranking second after that of France (2.7%).
It is emphasized that the longer the abnormal weather conditions due to the Middle East crisis or the climate crisis persist, the more difficult it will be for Korea to manage prices.
As a result, some voices are being raised in favor of structural changes, such as greater openness to agricultural imports. Regarding the prices of agricultural products such as apples, on the 12th, Bank of Korea Governor Lee Chang-yong said: “This problem cannot be solved by interest rates or finance, and now, fundamentally, while climate change is serious, will we continue to “It is time to ask whether the problem will be solved and where the popular consensus lies,” he stressed.
< 저작권자 ⓒ 서울경제, 무단 전재 및 재배포 금지 >
1713787975
#Fruits #unusually #expensive #country.. #Korea #ranks #terms #price #inflation #fruits #vegetables