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From beauty salons to laundry ‘line by line’… A vicious cycle of rising prices and wages

Recently, the price of most goods has risen to the extent that it is difficult to find one that has not risen in price, but now the service rates, which are close to our lives, are also rising. Prices for hairdressers, laundry, and bathrooms are also rising one after another.

Reporter Jung Jun-ho pointed this out.

A beauty salon in Goyang-si, Gyeonggi-do.

The adult cut rate, which was 18,000 won until last year, has risen to 20,000 won from this year.

It was an increase of 2,000 won, which is an 11% increase in terms of the rate of increase.

I didn’t raise it during Corona to fear that even a few customers would cut off, but after all, I raised the price for the first time in 4 years.

[김종인/미용실 원장 : 펌제라든지 염색제 그다음에 전기 요금 인상, 직원들의 급여 자체도 많이 올라가게 되고 그러다 보니까 물가 상승을 저희도 반영을 안 할 수가 없으니….]

Inflation started in earnest due to a rise in raw material prices, and service charges are also rising one after another.

Last month, service charges compiled by the Korea Consumer Agency increased by up to 10% compared to the same period a year ago for the five major charges for laundry, lodging, and beauty.

Excluding some food service items, the service price increase was limited until the end of last year, but it started to surge from this year.

It is interpreted that the increase in the price of raw materials exerted pressure to increase labor costs, affecting service rates, which account for a large proportion of labor costs.

[하준경/한양대 경제학과 교수 : 생활비가 더 많이 든다라는 게 느껴지잖아요. 그러면 아무래도 임금 인상 요구가 더 생기게 되는 거고… 인플레이션이 좀 더 이제 지속성이 높아지는 그런 상황이라고 봐야겠죠.]

There is growing concern that a vicious cycle in which inflation stimulates wages and wages stimulates inflation has already begun as service rates centered on labor costs rise following energy and raw materials.

(Video editing: Yoon Tae-ho, VJ: Park Hyun-woo)