RISE IN PRICES OF CONSUMER GOODS

[Anchor Lead]

Soaring prices of consumer goods are a major concern these days, especially ahead of the Chuseok holiday. Prices are expected to rise further after disaster relief funds are provided.

[Pkg]

Homemakers think twice before putting something in their shopping carts. Prices of groceries have spiked recently. Shopping for the upcoming Chuseok holiday is burdensome for many.

[Soundbite] Lee Seung-hyun(Seoul resident) : "Three cucumbers used to cost 1,900 won, but now they cost around 4,000 won. It’s expensive."

Prices of apples have surged 13 percent on-year, while pears have risen nearly 50 percent in price. Consumer prices are surging because of the poor harvest due to this summer's prolonged heat wave. Typhoons that may hit the country in fall could further exacerbate the situation. Prices of meat are up 7 percent on-year. The rising cost of dining out and the highest fuel prices in three years are making consumers tighten their belts.

[Soundbite] Lee Jin-kwan(Seoul resident) : "Today I filled it up to 40,000 won. Before, I would fill my gas tank completely. It’s almost 2,000 won per liter now. It’s tough."

Once the fifth disaster relief fund is paid to 88 percent of the population, food prices are expected to rise even further. Shortly after the first disaster relief fund last year, meat consumption increased, resulting in hanwoo beef prices surpassing 100,000 won per kilogram for the first time.

[Soundbite] Sung Tae-yun(Prof., Yonsei University) : "Subsidies intended for the public could contribute to expanding market liquidity, which can result in additional price increases."

The government’s outlook that consumer prices would stabilize in the second half of the year has gone awry, causing inflation concerns. Moreover, measures to support farmers have yet to produce tangible results.