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Global Inflation is Accelerating PolarizationInflation hits low-income families and migrant workers harder
µµÇÏ¿¬ °­³²Æ÷½ºÆ® Çлý±âÀÚ | ½ÂÀÎ 2022.11.26 22:54

Inflation is at an all-time high around the world. Korea is no exception. The Organization for Economic Cooperation and Development (OECD) forecasts that consumer price inflation in Korea will rise 5.2% this year. While inflation is rising everywhere, it devastates low-income households with tight budgets. 

Dr. Kate Summers of the LSE (London School of Economics and Political Science) insisted that low-income households cannot cope with budget pressures compared to high-income households, making inflation more difficult.
According to a report released by the Korea Economic Research Institute in March of this year, the inflation perception rate for the bottom 20% of income earners was 1.4 times higher than for the top 20%. 

This is particularly serious for migrant workers. For migrants whose relatives rely on the money they send back, higher prices mean a double burden for families. On October 24, AP News reported on migrant workers' difficulties due to the rising cost of living in the country. According to the report, they are cutting back on living expenses, side jobs, and overtime to help their families in their home countries. "I used to save a little, about $200 a week. Now I can barely save $100 a week. I live daily," said Carlos Huerta, a 45-year-old Mexican who works as a driver in New York City. Nugu, 49, a Filipino worker in Cyprus, has been cutting his grocery bills these days to save 200 euros a month for his family. However, he says that Filipino families are also struggling with rising prices.

At the 2022 BOK (Bank Of Korea) International Conference held in June, Lee Chang-Yong, Governor of the Bank of Korea, claimed that there is a possibility that the polarization phenomenon will intensify due to high inflation. He added that there is also a possibility that low prices and low growth environments will come after the inflation subsides.


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