Rising Service Prices Increase Consumer Burden

In the first quarter, prices for services such as restaurant meals and beauty treatments rose 3.2%, exceeding the overall inflation rate of 2.1% and increasing the financial burden on households. The consumer price index for the first quarter rose 2.1% year-on-year to 118.41. Individual service prices, however, saw a higher increase of 3.2%, reaching 122.75.

Out of 116 individual service items, 105 (90.5%) experienced price increases. All 39 dining-out items also saw their prices go up. Among individual service items, passenger car rental fees recorded the highest increase at 15.3%. Appliance repair costs (14.3%) and computer repair costs (10.4%) also registered double-digit percentage increases. Prices for daily necessities, including laundry services (7.1%), haircuts (3.0%), bathing fees (2.9%), and beauty services (2.3%), also rose. Service prices in education and health sectors, such as university admission fees (9.0%), e-learning fees (7.2%), and postnatal care services (5.2%), also increased.

The government is closely monitoring these challenges in the daily lives of citizens and preparing measures to stabilize prices. Through the TF for Special Management of Living Costs, the government has initiated institutional improvements to alleviate the burden of service price hikes, including establishing a price trend monitoring system and mandating the disclosure of non-apartment management fee details. Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol stated at the Emergency Economic Council meeting on April 24th that the response would focus on mitigating macroeconomic uncertainties and easing the burden on households.