Average monthly real income per household rose 1.5% year on year in the second quarter, but real consumption expenditure increased just 0.4%, less than half the income growth rate. The Ministry of Data and Statistics attributed the divergence to the effects of high prices, a high won exchange rate and high interest rates, which have raised housing and borrowing costs. Nominal household income rose 4.5% to 5.295 million Korean won per month, while consumption expenditure increased 3.4% to 2.932 million won. Real labor income fell 2.2% for a second consecutive quarter as the job market contracted, but total income was lifted by a 16.9% surge in transfer income from high oil price damage support funds. Consumer-price inflation reached 3.1% in May and 3.2% in June, while Seoul jeonse (lump-sum housing leases) and monthly-rent increases added to housing costs. Household interest expenses rose 12.1% in the second quarter, compared with 6.6% in the first. Spending fell particularly in non-essential categories, including dental services, travel, accommodation, tobacco and alcohol.