Petroleum prices, which had been quiet at the beginning of this year, are rising again, becoming a factor in price instability in the first half of the year. Due to the still high prices of agricultural products and fluctuating oil prices, there are also predictions that prices could fall back into the 3% range this month.
According to foreign media on the 28th, international oil prices, which had regained stability early this year, have been steadily rising recently as political instability in the Middle East has grown.
Dubai oil, which fell to $74.87 per barrel at the end of last year, has recently been fluctuating around $80. As of the afternoon of the 27th, it is $80.84. U.S. West Texas Intermediate (WTI) crude oil, which fell to $67.71 during the same period, and Brent crude oil, which hit a low of $72.29, also recorded $77.61 and $81.70 per barrel, respectively, the afternoon before.
Domestic petroleum prices are also steadily rising, with the price of gasoline in Seoul exceeding 1,700 won due to the rise in international oil prices.
According to Korea National Oil Corporation’s oil price information service ‘Opinet’ on the 28th, the national average gasoline price as of the previous day was 1,635.44 won, an increase of 0.60 won compared to the previous day. It has risen for over a month from 1,564 won on the 4th of last month and has already surpassed 1,600 won.
The price of gasoline in Seoul, which was 1,636 won on the 3rd of last month, exceeded 1,700 won on the 16th and reached 1,718 won on the 27th. The national currency price, which was around 1,400 won at the beginning of this year, was also calculated to be 1,537.27 won on the same day.
As petroleum prices, which had been quiet at the beginning of this year, are rising again, it is becoming difficult to keep the consumer price increase rate, which had slowed to 2.8% in January, at the 2% range for the time being.
According to the Bank of Korea on the 21st, producer prices in January rose 0.5% from the previous month due to the rise in oil prices, showing an upward trend for two consecutive months.
Seok Byeong-hoon, professor of economics at Ewha Womans University, predicted, “Because the producer price index leads the consumer price index by about 1 to 3 months, there is a high possibility that the consumer price inflation rate will temporarily rebound to the 3% range in February.”
International oil prices are expected to become the biggest variable in inflation in the first half of this year. The Bank of Korea predicted that if global geopolitical conflicts, including those in the Middle East, increase, the annual consumer price increase rate this year will be 2.8%, which is higher than the basic forecast (2.6%) due to supply chain disruptions and rising raw material prices.
(Sejong = News 1)
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.