Retail Sales Growth Hits 30-Month High
By Lee Hyo-sik
Staff Reporter
The value of retail sales in July grew at their fastest pace in two-and-a-half years as consumers were forced to pay more for gasoline and other auto fuels amid soaring global oil prices. Also, more households bought air conditioners, fans and other electric goods to cope with the hot summer weather.
According to the National Statistical Office (NSO) Wednesday, retail sales recorded 20.8 trillion won in July, up 12.3 percent from 18.5 trillion won a year earlier. The 12.3 percent year-on-year growth is the highest since January 2006 when sales rose 12.7 percent.
Consumers spent 4.1 trillion won on gasoline and other oil products, up 28 percent from a year ago. Auto sales rose 5.4 percent to 2 trillion won, while sales of cosmetics and soaps jumped 13.6 percent and that of medicine and medical equipment went up 14.3 percent.
``July's average temperature was higher than in the past, making more families purchase air conditioners and other cooling electric products. Also, drivers continued to have to pay more to fill their tanks amid surging oil prices, boosting the overall value of retail sales,'' said Kim Han-sik, director of the NSO's economic statistics bureau.
The sale of gasoline and other fuels accounted for 19.7 percent of total retail sales, up from 17.3 percent a year earlier, while that of food items took 21.4 percent.
Consumer prices rose 5.9 percent in July from a year earlier, the highest since November 1998 when prices jumped 6.8 percent. The cost of living index, consisting of food and other daily necessities, jumped 7.1 percent from a year ago, meaning that consumers felt the inflation burden more heavily than the overall price increase.
But in August, consumer price growth slowed as international crude oil and other raw material prices dropped. Consumer prices rose 5.6 percent from a year earlier, the first slowdown in six months.
Department stores and discount stores saw the value of sales rise 3.8 percent to 1.4 trillion won and 8.9 percent to 2.6 trillion won, respectively. Online shopping malls and TV home shopping channels saw a surge of 17 percent to 2 trillion won in July from a year ago.
Retail sales in South Chungcheong Province increased 24.1 percent from a year earlier, followed by North Gyeongsang Province with 15 percent and Jeju Province with 14.5 percent. Seoul saw sales grow 5.6 percent.