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Cost of Services Spike following Lifting of Social Distancing

Written: 2022-05-09 15:45:18Updated: 2022-05-09 15:58:24

Cost of Services Spike following Lifting of Social Distancing

Photo : YONHAP News

Prices in the service sector have spiked following the government's lifting of most social distancing regulations.

According to the Korean Statistical Information Service(KOSIS) on Monday, personal service prices rose four-point-five percent on-year in April, the fastest rate of increase since January 2009.

Prices for dining out jumped by six-point-six percent on-year, compared to three-point-one percent for other services.

By service type, domestic group tour prices surged 20-point-one percent from a year earlier, while driver-hailing service prices rose 13-point-one percent and for insurance service fees ten-point-three percent.

The rise in service prices, which increased one to one-point-one percent just after the outbreak of COVID-19 between February and August 2020, climbed above two percent in March last year, further rising to over four percent in February this year.

The state agency assessed that the spike reflects not only rising raw material and operation costs, but also the recovery in consumer demand as the public begins to revert to pre-pandemic social behaviors.

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