Prices in 2022

Why did prices jump in 2022?

In 2022 especially, prices rose 5.1% in a single year. Things bought from abroad, like oil and grain, jumped in price. From 2020 to 2022, the prices of imported goods (paid in won) rose about 48%. When these go up, fuel and foods made from flour follow. Wages don't jump suddenly like that, so at times like this it really feels as if only prices are rising.

Why?Goods from abroad are often bought in US dollars. How many won it takes to buy one dollar is called the exchange rate. At the end of 2020, one dollar cost about 1,088 won; by the end of 2022, about 1,267 won. For example, flour worth one dollar used to cost 1,088 won and now costs 1,267 won. The same goods cost more in our money.

Learn moreIn 2022, world oil and grain prices rose sharply, partly because of war. Imported goods prices use the import price index (in won), and the exchange rate uses each year-end value. The bars are stretched so the difference is easier to see.

Prices of imported goods, 2020 → 2022

48%

calculated from Bank of Korea ECOS data and recorded ramen prices