Korea to release online price index
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South Korea plans to unveil a new index tracing online retail prices this year by using big data from private sector to reflect actual economic sentiment, according to Statistics Korea on Tuesday.
The state-run agency plans to release an online price index that will complement the consumer price index by the end of this year, the agency reported in its 2016 plan to President Park Geun-hye.
To develop the new indicator, Statistics Korea is currently collecting price data from six major online shopping malls and discount store chains — E-Mart, Homeplus, Lotte Mart, Lotte Supermarket, 11st and Interpark.
“The online price index will be calculated based on the prices of a sample of representative items being sold online,” an official at the agency said.
He added that the index will show the average price change on a daily basis unlike the consumer price index which shows monthly data.
Questions & Answers
Q.What is the primary purpose of the new online price index being developed?
What is the primary purpose of the new online price index being developed?
Statistics Korea aims for the online price index to reflect actual economic sentiment. It is intended to complement the existing consumer price index by providing a different perspective on retail prices and changes in the market.
Q.When does Statistics Korea expect to release this new online price index?
When does Statistics Korea expect to release this new online price index?
Statistics Korea plans to release the online price index by the end of this year. This intention was stated in the agency's 2016 plan, which was reported to President Park Geun-hye.
Q.From which retailers is Statistics Korea gathering data for the new index?
From which retailers is Statistics Korea gathering data for the new index?
Statistics Korea is collecting price data from six major online shopping malls and discount store chains. These include E-Mart, Homeplus, Lotte Mart, Lotte Supermarket, 11st, and Interpark for the development of the new indicator.
Q.How will the online price index differ from the current consumer price index in terms of frequency?
How will the online price index differ from the current consumer price index in terms of frequency?
Unlike the consumer price index which provides monthly data, the online price index will show the average price change on a daily basis. This offers a more frequent insight into price fluctuations in the online retail sector.