Economic Calendar This Week: Week beginning 2 August 2021
Updated: 2021-08-02 07:38:15 KST
Statistics Korea, on Tuesday, is set to release the consumer price index for July.
The index increased by two.four percent in June on-year.
Although it showed a slight decline from two.six percent in May, which was the biggest spike in nine years,…the index has been increasing for most of the year, pushing up domestic inflation.
The increase was largely due to a rise in the cost of agricultural and livestock products.
The price of eggs surged by almost 55 percent , garlic by just under 49 percent, and red pepper powder by 35 percent.
When it comes to egg prices, the agency attributed the jump to a shortage of laying hens due to avian influenza.
The consumer price index is one of the major barometers of inflation,which could harm the economy.
However, with several daily foods, including ramen,Koreans' favorite instant noodles, either raising or considering raising their pricesthe domestic consumer prices appear set to rise for some time.
On Wednesday, the Bank of Korea will release the country's foreign exchange reserves for July.
The reserves in June declined for the first time in three months…down to around four-hundred-54-billion U.S. dollars.
They were also down two.four billion dollars from the all-time record in May.
The central bank explained that a fall in assets held in foreign currencies at financial institutions and a rising won-dollar exchange rate have primarily caused the decrease.
The Federal Reserve is expected to reduce its monthly asset purchases in the near future. This could result in a stronger US dollar and another drop in the foreign exchange reserves in South Korea.
Seo Eunkyung, Arirang news.