International oil prices 16.2%, soybean 53.7%, corn 40.7%, wheat 16.3%…
Oil and grain prices, which determine the price of daily living, are jumping steeply.
The rise in crude oil prices has increased the pressure to raise electricity prices, and the prices of food and beverages such as bread, tofu, and beverages are also raising consumer prices.
West Texas crude oil (WTI) for March delivery on the New York Commercial Exchange on the 12th (local time) closed at $59.47, up 2.1% ($1.23) per barrel from the previous day.
Compared to a year ago, it rose 16.2%, and compared to April last year, when oil prices plunged to $10 a barrel in the pandemic, it surged six times.
Grain prices such as soybeans, corn, and wheat are rising more steeply.
Soybean prices were 13.72 dollars per bushel (27.2 kg), 53.7% higher than a year ago (8.93 dollars), corn prices were 5.39 dollars, 40.7%, wheat (wheat) 6.37 dollars, 16.3%, oats 3.51 dollars. Rose by 15.4%.
Only 180 million tonnes of rice in inventory worldwide fell 4.5%.
The rising raw material and grain prices increase the price of living with a lag of 3 weeks to 6 months.
When international oil prices rise, gasoline prices follow with a lag of about three weeks.
Electricity rates are also linked to fuel costs, which inevitably raises pressure.
Although it takes about half a year for grain prices to be reflected in consumer prices for food and beverages, some places have already raised product prices as prices have steadily increased since the second half of last year.
Tous Les Jours raised the price of bread by about 9%, and Paris Baguette is also expected to raise prices sooner or later.
Lotte Chilsung Beverage has increased the average price of beverages by 7.0% in six years, and tofu (10%) and canned side dishes (36%) are also rising.
If grain prices begin to be reflected in confectionery, ramen, and ready-to-eat food, the overall consumer price increase is likely to rise as well.
The recent surge in prices in the international commodity and grain markets has caused liquidity to be solved on a large scale around the world, and after a year and a half to two years of raw material prices have soared, the rate of increase decreases. There is also an interpretation that it may be the beginning of’.
Lee Mi-sun, a researcher at Hana Financial Investment, said, “The recent surge in raw material prices is a typical phenomenon that appears after the expansion of the currency volume.”
In the aftermath of the novel coronavirus infection (Corona 19) last spring, the first unprecedented situation in which oil prices once recorded negative and grain prices fell sharply, so the rate of increase in consumer prices, which remained in the 0% range recently, was in the base effect of March to April this year. It is expected to rise to the% level.
Some believe that even though the prices of raw materials and grains continue to rise, the rate of consumer inflation itself will not continue to surge once the base effect disappears.
It is true that agricultural products and oil prices have a great influence on the inflation rate, but in order for hyperinflation to occur, it is because demand for industrial products, durable goods, and non-durable goods, such as’retaliation consumption’, must be realized.
Young-moo Cho, a researcher at the LG Economic Research Institute, said, “The prices of raw materials and grains and utility bills will draw an upward curve, but the index of consumer inflation will not rise enough to lead to changes in monetary policy.” “For that to happen, demand recovery must first appear. “He said.
/yunhap news