Domestic demand shrinks due to high prices... "Retail sales fall for 3rd consecutive year"

Domestic consumption shrank in the first half of this year due to prolonged high prices and high interest rates.

According to a report prepared by the Korea Employers Federation by analyzing the service industry trend survey data of the National Statistical Office, the growth rate of the retail sales index, which removed the impact of inflation in the first half of this year, decreased by 2.4% from the same period last year.

As of the first half of the year, the growth rate of the retail sales index continued to decline for the third consecutive year since 2022, the lowest since 2003 when domestic consumption fell significantly due to the "card crisis."

By item, the retail sales index for heating devices, furniture, medicines, and food and beverage increased from a year ago, but the number of cars, entertainment and hobby goods, bedding, and kitchenware decreased.