Rising oil, raw material prices fan inflation concerns
By Lee Kyung-min Concerns over inflation are mounting triggered by a steep rise in oil and raw material prices amid growing expectations for an economic recovery, setting the stage for discussions on whether pandemic-induced expansionary policies need to be drawn down.Some say the current rise in the prices of goods and services does not qualify as inflation ― a general rise in price levels over a period of time ― since it is a temporary phenomenon primarily caused by base effects from the grim conditions in the economic and financial markets over the past year.But others say “real” inflation is a possibility, driven by an explosive demand for consumption long pent up because of the yearlong economic contraction.The price increases are certain to lower the purchasing power of households and elevate production costs. Producers can offset their rise in costs by selling products at a higher price, whereas consumers have no way of avoiding soaring living costs other than to reduce spending. Either way, households and businesses that have barely made it through months of strug
