June Prices Remain Steady... But Meat Prices Jump Up (Follow-up)

Statistics Korea, June Consumer Price Trends

[Sejong=Asia Economy Reporters Kim Hyunjung and Joo Sangdon] Consumer prices remained flat last month. However, prices of pork, beef, and mackerel rose by more than 10%, continuing the upward trend in grocery prices.

On the 2nd, Statistics Korea announced the June consumer price trends containing this information.

According to the report, the Consumer Price Index stood at 104.87 (2015=100), showing a 0% change compared to the same month last year.

Ahn Hyungjun, Director of Economic Statistics Trends at Statistics Korea, explained, "The reason for the continued low inflation is the slowdown in the rise of dining-out prices due to COVID-19 and the deceleration of travel-related service prices. However, prices of livestock products increased due to demand growth following emergency disaster relief funds and the transition to daily quarantine."

Excluding seasonal factors and temporary shocks, the core inflation rate calculated from 407 items excluding agricultural products and petroleum-related items out of a total of 460 items rose by 0.6% compared to the same month last year.

The core inflation rate range, based on the OECD standard excluding food and energy-related items, calculated from 317 items, increased by 0.2% compared to the same month last year.

The fresh food index rose 4.3% compared to the same month last year. Fish and vegetables increased by 7.9% and 9.8%, respectively, while fruits fell by 3.2%. Notably, pork (16.4%), domestic beef (10.5%), napa cabbage (58.1%), sweet potatoes (30.2%), and mackerel (14.5%) saw significant price increases.

By item type, goods fell by 0.2% compared to the same month last year. Agricultural, livestock, and fishery products rose by 4.6%, industrial products fell by 1.4%, and electricity, water, and gas rose by 1.3%. Services increased by 0.1%. Rent and personal services rose by 0.2% and 1.0%, respectively, while public services fell by 2.0%.

Director Ahn forecasted, "Petroleum prices continued to rise through June, affecting inflation, and recent retail sales recovery and growth in the service sector will contribute to some demand increases, which will act as inflationary factors next month. The overall decline in public service prices in the education sector compared to the same month last year will act as downward pressure."

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