South Korea’s consumer price inflation hovered below 3 percent for the fifth consecutive month due to a slower price growth in farm goods and oil products, statistical office data showed Tuesday.

The consumer price index (CPI) grew 2.0 percent in August from a year earlier after gaining 2.9 percent in April, 2.7 percent in May, 2.4 percent in June and 2.6 percent in July, according to Statistics Korea.

It marked the lowest increase in 41 months since March 2021, but the headline inflation continued to surpass the Bank of Korea (BOK)’s mid-term inflation target of 2 percent.

The BOK left its benchmark interest rate unchanged at 3.50 percent since January 2023.

Price for agricultural, livestock and fishery products climbed 2.4 percent in August on a yearly basis, lower than a growth of 5.5 percent in July.

Agricultural products prices advanced 3.6 percent last month, lifting the overall inflation by 0.15 percentage points.

Apple prices jumped 17.0 percent, with pear prices more than doubling in the cited
month. Prices for peach, oriental melon and tomato declined in double digits.

Livestock products prices added 0.8 percent, and fishery products prices went up 1.8 percent.

Prices for pork and imported beef gained in single figures, but those for beef and chicken slipped in single digits.

Oil products prices edged up 0.1 percent in August from a year earlier, sharply lower than an increase of 8.4 percent in the previous month.

Prices for gasoline and diesel fell 0.7 percent and 1.9 percent each, but liquefied petroleum gas prices picked up in double figures.

Prices for industrial products, including oil products, swelled 1.4 percent last month, raising the headline inflation by 0.47 percentage points.

The processed food price mounted 1.9 percent in August on a yearly basis after rising 2.0 percent in the previous month.

Prices for electricity, natural gas and tap water were up 3.3 percent, pulling up the overall inflation by 0.12 percentage points.

Heating costs and waterworks fees expanded 9.8 percent
and 3.8 percent each, with city gas charges advancing 6.9 percent.

Private service prices, including eating-out costs, spiked 3.0 percent last month, while public service prices gained 1.4 percent.

The eating-out expense increased 2.8 percent, drawing up the inflation by 0.39 percentage points.

Housing rent, including Jeonse and monthly rent, inched up 0.4 percent in August from a year earlier.

Jeonse is South Korea’s unique contract between two households where a landlord grants the two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.

The livelihood items index, which gauges the price for daily necessities, grew 2.1 percent in August after expanding 3.0 percent in the previous month.

The fresh food index, which measures the price of fish, shellfish, fruit and vegetables, gained 3.2 percent last month, lower than a growth of 7.7 percent in the prior month.

Demand-side inflationary pressure remained relatively low. The core consumer price inde
x, which excludes volatile agricultural and oil products, climbed 1.9 percent last month.

The OECD-method core price, excluding volatile energy and food costs, was up 2.1 percent. Enditem

Source:The Namibia News Agency