Most households to spend less on travel amid inflation

SEOUL, July 27 (Yonhap) -- A majority of South Korean households plan to cut their spending on travel during the summer vacation season due to high inflation and rising debt, central bank data showed Wednesday.
The consumer sentiment index (CSI) for domestic and overseas travel dropped to 89 this month from 92 during the same month a year earlier, according to the data by the Bank of Korea (BOK).
A reading below 100 means that households planning to cut travel expenditures outnumber those intending to spend more. The index has been hovering below the 80-point mark since March.
"The index fell as high consumer prices have forced households to tighten their belts," a BOK official said. "Most consumers seem to have no extra money to spend on travel."
South Korea is grappling with surging consumer inflation. The country's consumer prices jumped 4.4 percent on-year in June, marking the sixth straight month that they have stayed above the 4 percent level.
Also, there is growing concern over household indebtedness. As of end-March, the country's household debt reached around 800 trillion won (US$742.1 billion), according to government data.
elly@yna.co.kr