Won-Dollar Rate Rise Could Lift CPI by Up to 0.5 Point, HRI Says

Hyundai Research Institute said on May 10 that if the won-dollar exchange rate rises by 10%, consumer prices could increase by about 0.3 to 0.5 percentage point. The institute presented the exchange-rate rise as a factor that can add to inflation pressure by affecting broader living costs through import prices. It said such price gains could expand the burden on vulnerable groups with limited income capacity. The impact may be felt more strongly by groups with a high share of essential consumption, underscoring the need to monitor exchange-rate movements and price trends. Source: yna.co.kr