March Consumer Prices Up 1%... Maintaining 1% Range Increase for Three Consecutive Months (Update)

Statistics Korea, March Consumer Price Trends

[Sejong=Asia Economy Reporters Kim Hyun-jung and Joo Sang-don] The consumer price index in March maintained a rise rate in the 1% range. Statistics Korea explained that this was the result of a complex interplay between 'downward factors' such as the decline in international oil prices and the reduction of individual consumption tax on passenger cars, and 'upward factors' such as increased consumption of processed foods and livestock products at home due to restraint in dining out.

According to the consumer price trends for March announced by Statistics Korea on the 2nd, the consumer price index was 105.54 (2015=100), rising 1.0% compared to the same month last year. This marks the third consecutive month of a 1% range increase since January this year (1.5%).

The 'index excluding agricultural products and petroleum,' which reflects the underlying inflation rate excluding seasonal factors or temporary shocks, rose 0.7% compared to the same month last year. The 'index excluding food and energy,' which excludes food and energy items based on the Organization for Economic Cooperation and Development (OECD) standards for underlying inflation, increased by only 0.4% compared to the same month last year. This is the lowest increase since December 1999 (0.1%), near the end of the International Monetary Fund (IMF) foreign exchange crisis.

The fresh food index rose 3.8% compared to the same month last year. Fresh fish and shellfish increased by 8.4%, fresh vegetables by 16.6%, while fresh fruits fell by 10.0%. Statistics Korea analyzed that the decline in fruit prices is due to a bumper fruit harvest last year.

By item type, agricultural, livestock, and fishery products rose 3.2% compared to the same month last year, industrial products rose 1.3%, and electricity, water, and gas rose 1.6%, resulting in an overall increase of 1.6%. Although rent and public services fell by 0.1% and 0.6% respectively, personal services rose by 1.1%, leading to an overall increase of 0.5% in services.

An Hyung-jun, Economic Trend Statistics Officer at Statistics Korea, said, "Since prices were very low last year, there is a base effect, so it seems difficult for prices to record a significant negative this year. However, if the global economy worsens due to COVID-19, it is expected to affect individual countries as well. We need to observe a bit more regarding the impact on prices due to decreased demand and supply chain issues."

This content was produced with the assistance of AI translation services.