Won-Dollar Rate Rise of 10% May Lift CPI by Up to 0.5pp, HRI Says

Hyundai Research Institute said on the 10th that if the won-dollar exchange rate rises by 10%, consumer prices could increase by about 0.3 to 0.5 percentage point. The analysis indicates that a weaker won may affect overall prices through import costs and living expenses. The institute said such inflationary pressure could increase the burden on vulnerable groups. Households with limited income may feel a larger impact from the same price increase, making it important to monitor how exchange-rate movements feed into consumer prices. Source: yna.co.kr