April Consumer Prices Up 0.1% YoY... 0% Range for the First Time in 4 Months (Update)

[Asia Economy Reporter Kwangho Lee] Due to the impact of the novel coronavirus infection (COVID-19), the consumer price inflation rate fell to the 0% range last month for the first time in four months.

According to the 'April Consumer Price Trends' announced by Statistics Korea on the 4th, the consumer price index last month was 104.95 (2015=100), up 0.1% compared to the same period last year. Compared to the previous month, it fell by 0.6%.

The consumer price index maintained the 1% range for three consecutive months in January (1.5%), February (1.1%), and March (1.0%), but dropped below 1% for the first time in four months.

By item category, prices of agricultural, livestock, and fishery products rose by 1.8%, while industrial products fell by 0.7%. In particular, petroleum prices fell by 6.7% due to the decline in international oil prices.

Last month, the service price inflation rate was only 0.2%. The price of dining out, which accounts for a significant portion of service prices, rose by only 0.8%. Public services fell by 1.6%.

Core inflation, excluding food and energy, was 0.1% compared to the same period last year, marking the lowest level since December 1999 (0.1%) during the IMF financial crisis. Compared to the previous month, it fell by 0.2%.

An Hyeongjun, Economic Trend Statistics Officer at Statistics Korea, said, "Changes in consumption patterns due to COVID-19 affected prices," adding, "As people refrained from going out, demand for dining out decreased, resulting in a low dining out price inflation rate. The significant drop in petroleum prices due to the decline in international oil prices and the decrease in public service prices due to free high school education are the main reasons for the low inflation rate."

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