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Soaring consumer prices sent gross national income, which represents purchasing power, tumbling as they reached their highest mark in six years in May. The Bank of Korea on Monday said GNI during the first quarter of this year decreased 1.2 percent from the end of last year. This is the largest margin since the first quarter of 2003, when GNI declined by 1.6 percent. Although Korea earned more money from trade, the purchasing power of Koreans worsened because of inflation.
ˇ°GNI dropped as losses from trade increased due to unfavorable trade conditions such as surging prices of raw materials,ˇ± a BOK official said. Even though exports increased, the price of export goods dropped, so Korea was unable to make enough profit to balance the surging prices of imports. The National Statistical Office on Monday said the consumer price index in May rose 4.9 percent compared to a year ago, the highest increase rate in six years and 11 months. This sent the CPI increase rate beyond the government target of 3.5 percent for the seventh month running.
(englishnews@chosun.com )
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