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With rising food prices already posing a threat to the livelihood of ordinary people, prices of public services including gas, electricity and public transportation are expected to increase in the second half of the year.
The Korea Dairy and Beef Farmers Association reached an agreement with milk companies on Saturday to increase the supply price of unpasteurized milk by 20.5 percent from W584 to W704 a liter (US$1=W1,014). The deal will result in a rise in prices of milk and other dairy products, such as powdered milk, cheese, butter, yogurt and ice cream by as early as Aug. 1.
The hike of 20 percent means the price of milk will rise from the current W1,850 per liter to around W2,200. It will be the second price rise in a month since milk saw a 7 percent increase in the middle of this month.
The price of beer also rose 5 percent last week as the sizzling summer heat has pushed up demand. Other commodities like noodles, cooking oils, eggs, green tea and cookies have also posted price increases of some 10 percent.
Public services are also expected to get more expensive. The government plans to increase the wholesale price of city gas by 30 percent for household use and 50 percent for industrial use over three months from August. The government also plans to raise the price of industrial power by some 5 percent in August.
"The government's weak won policy has caused inflation as well as price increases for raw materials," said Lee Eun-hee, a professor at Inha University and head of the Korea Society of Consumer Studies. "The rise of commodities prices may be inevitable, but the government should work to postpone price increases for public services as late as possible."
(englishnews@chosun.com )
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