S. Korea’s CSI declines to 100.7 in March – survey

South Korea’s consumer sentiment index (CSI) dropped sharply to 100.7 in March from 101.9 in February, due to concerns about rising produce prices, Reuters reported on Tuesday, citing a central bank survey.

This drop marks the largest monthly decline since October.

Inflation expectations for the next 12 months increased to 3.2 from 3.0 per cent, with two-thirds of respondents attributing the rise to produce prices.

The surge in produce prices has been linked to supply-side pressures, including higher agricultural prices.

The opposition Democratic Party has criticised President Yoon Suk Yeol’s government for economic mismanagement, citing the impact on consumer prices.

The upcoming elections will be crucial, with the People Power Party facing a tough battle to regain a majority in the 300-member parliament.

Consumer inflation gained attention after President Yoon’s recent visit to a supermarket, where he commented on the price of green onions.

Critics accused him of being out of touch, as the product is normally sold at a higher price. The issue of rising prices has become a key concern for voters ahead of the elections.