Chicken prices rise again...Surge in exchange rate stimulates food prices abroad = Korea

Analysts have suggested that if the won-to-dollar exchange rate, which is currently at around 1,400 won in South Korea, falls in the future, this could lead to increases in chicken prices and airfares in the second half of the year.
The reason is that the sharp rise in the exchange rate since October last year is putting lag-time upward pressure on domestic consumer prices through import prices.
On the 26th, the Bank of Korea released a report entitled "Analysis of the long-term and short-term price transfer effects of exchange rates: focusing on the transmission path through individual items."
"Even if the exchange rate falls slightly in the future, the rapid rise in the exchange rate thus far may remain a potential factor for inflation in the second half of this year," the report said.
Cho Kang-cheol, deputy director of the inflation trend team at the Bank of Korea Research Department, who compiled the report, said, "We only analyzed periods when the exchange rate rose sharply and remained at that level for more than three months, like the recent period.
"The results showed that the impact of the exchange rate on inflation is greater in the long term than in the short term," he said.
According to the report, when looking at the items that make up the CPI, the cumulative effect over the nine months following the exchange rate fluctuation is significant, with the exception of long-term sensitive items.
It includes many service items with relatively high price stability, such as food and other personal services. There are 73 long-term sensitive items, and 10 short-term sensitive items, whose inflation rate increases within three months of an exchange rate change.
This was more than the number of eyes (45).