Consumer Price Item Restructuring... Dryer and Mask Inclusion to Be Considered Next Year

Sales Surge as Air Quality Deteriorates Due to Fine Dust Pollution

[Asia Economy Reporter Kim Min-young] The Statistics Korea has decided to include dryers and yellow dust masks in the items used as the basis for calculating the Consumer Price Index (CPI), which is announced monthly. Statistics Korea has been revising the price index every five years to reflect changes in consumption patterns, and recently, as sales of dryers and masks increased due to fine dust and other factors, it decided to include these items in the survey.

According to the government and Statistics Korea on the 26th, Statistics Korea has begun adjusting the 460 items used as the basis for calculating the Consumer Price Index to align with recent consumption trends. Every month, Statistics Korea surveys price trends of 460 items such as rice, pork, jajangmyeon, city gas, and city bus fares in 38 regions including Seoul. The price changes of each surveyed item are aggregated to calculate the Consumer Price Index.

A government official said, "The revision of the price index, which occurs once every five years, is based on changes in household expenditure from the Household Trend Survey," adding, "We will newly include items mainly in the 460 items that have recently seen increased consumer expenditure." Amid criticism about the gap between official prices and perceived prices, the revision will focus on items with high purchase frequency and frequent buying, where price changes are strongly felt.

In last year's Household Trend Survey expenditure section, items with notably increased sales were dryers and yellow dust masks. Dryers have become essential home appliances as the market size has grown twentyfold over the past four years due to worsening air quality caused by fine dust. Currently, the surveyed home appliances include electric rice cookers, gas ranges, microwaves, electric ranges, refrigerators, kimchi refrigerators, air conditioners, fans, air purifiers, washing machines, vacuum cleaners, blenders, heating mats, bidets, and TVs.

According to the Ministry of Food and Drug Safety, as fine dust worsened, the production performance of health masks in 2018 recorded 114.5 billion KRW, more than tripling compared to the previous year.

Instead of including items with frequent consumption like these, items with reduced consumption frequency or diversified products by function will be classified or adjusted in detail. Statistics Korea plans to announce the results of this year's item revision and disclose the Consumer Price Index calculated by reflecting the adjusted items starting from January next year.