1. Opening
Stopped construction sites, gasoline, diesel, and hidden menu prices that go up every day.
Amid the continuing high inflation around the world, the red light has begun to turn on in the lives of the people as well.
All of this is due to inflation. The Fed has announced a giant step to raise interest rates by 0.75 percentage points all at once in an attempt to catch inflation.
In this time, we will study together how inflation affects our lives.
2. Main video
Inflation is a continuous decrease in the value of money as prices rise. Starting with the COVID-19 pandemic, there have been a series of situations that have taken a toll on the economy, such as the US-China conflict, the Ukraine crisis, and the Chinese blockade.
As a result, industries that depended on imports had no choice but to be hit hard. In this situation, the supply of raw materials was not easy, so the price of raw materials soared, and the damage caused by this went back to the people as inflation.
According to data from the National Statistical Office released in May of this year, the inflation rate was 5.4% compared to the same month of the previous year. The income remains the same, but the price of the product rises, so even the things you normally buy are more expensive.
To prevent the rising risk of inflation, the US begins raising interest rates.
“Unemployment may rise slightly as the Fed raises interest rates, but it turns out that the US economy could achieve a soft landing.”
The USD-KRW exchange rate hits a 13-year high as the Fed raises interest rates.
As a result, on the 20th, the KOSPI hit its lowest level during the day when it broke the 2300 line. As the won-dollar exchange rate rises, foreigners are making a massive net selling, which is having a big impact on the stock market.
As a result, individual investors are taking a huge hit. Experts advise that stock prices can go down further when the economy enters a recession. The Bank of Korea is also expected to raise the key interest rate in line with the rate hike in the US.
As the Ukraine crisis is prolonged and the situation has not yet stabilized due to an international surge and a shortage of raw materials, we must be careful about excessive investment at present.
3. Closing
The rate hike has not been completed yet while inflation continues to rise due to worsening external conditions. Now that we are in an uncertain situation, I think it is time to look at the economic situation while protecting our assets rather than making hasty investments.
We will come back with more useful information next time.
Let’s study the future industry with MZ Tech. then hello
By Son Hee-jeong, staff reporter sonhj1220@kukinews.com
