Costs of Private Services Hit 52-Month High
By Yoon Ja-young
Staff Reporter
Consumer prices of private services rose 4.4 percent from a year ago in May, marking the highest growth rate during the last 52 months. The expanding services cost is not only burdening households, but also dampening the services businesses outlook.
According to the National Statistical Office (NSO), private services prices such as private tutoring, buying airline tickets and apartment management rose 4.4 percent last month, the highest rise since January 2004.
Households are also pressured by inflation when eating out due to the global hike in crop prices. According to World Food Program, global rice prices rose 250 percent last year ― the price of wheat soared 56 percent, while that of corn jumped 50 percent.
The statistics showed that working class people are likely to have been more severely hit by the price hikes at cafeterias and restaurants. ``Ramyeon'' (instant noodles) and ``gimbab'' ― rice rolled in dry seaweed ― which are relatively cheap dishes sold at snack bars, rose by around 16 percent. Pizza, fried rice, and fried chicken all climbed by about 10 percent. ``Galbi,'' or Korean traditional ribs, one of the typical expensive items when eating out, increased by only 1.6 percent, and sushi prices rose by less than 1 percent.
``The cost of eating out has risen due to global crop price hikes, while travel prices and international airfares soared on the back of rising oil prices,'' a spokesman at the statistical office said.
The jump in prices doesn't mean that services businesses are making more money, as they are suffering from a falling number of customers.
Korea Air sustained 325.5 billion won in losses in the first quarter on rising costs. Airliners are decreasing the number of flights, or considering using smaller airplanes. Travel agencies, which raised tour package prices on rising airfares and other costs, fear that fewer customers will be heading abroad this summer.