By Kim Jae-kyoung
Staff Reporter
Costs of groceries in Korea accounts for 28 percent of the consumer price index, nearly double that of the United States and the European Union, according to the Bank of Korea (BOK).
The figure is also well above the nation's rivals in the region, including Hong Kong, Taiwan and Singapore.
The central bank said Wednesday that in the consumer prices index, the weighting of costs for groceries ― agricultural, fishery and livestock products, processed food and dining-out ― reached 28 percent in 2005, well above the United States (13.8 percent) and the EU (15.8 percent).
The comparable figures for Hong Kong, Taiwan and Singapore stood at 26.9 percent, 25.1 percent and 23.4 percent, respectively.
``Higher weighting of costs for groceries implies that hikes in prices of international grain may have a bigger ripple effect on the nation's consumer prices,'' a BOK official said.
With soaring international grain prices coupled with high oil prices, Asian countries where grocery costs took up a larger portion of household spending have faced an upward spiral of consumer prices.
In the first quarter, Vietnam saw its consumer prices surge 16.4 percent. In Hong Kong and China, the prices grew 5.5 percent and 8 percent, respectively.
``Major Asian countries, including Singapore, Taiwan and China, tried to hold down inflationary pressures by allowing their currencies to remain strong,'' the official said.