Steeper Rise in Jeonse Prices... Up 0.8% in November, Highest in 23 Months (Comprehensive)

November Consumer Price Trends

Consumer Prices Rise 0.6%... Still Low Inflation

(Photo)

[Sejong=Asia Economy Reporter Joo Sang-don] Last month, the rise in jeonse prices became steeper. It increased by 0.8%, marking the highest level in 23 months since December 2018. However, the overall consumer price index remained below 1% for the second consecutive month.

According to the 'November Consumer Price Trends' released by Statistics Korea on the 2nd, the consumer price index stood at 105.50 (2015=100), up 0.6% compared to the same month last year. The rate of increase was 0.5 percentage points higher than the previous month (0.1%), but it remained in the 0% range for two consecutive months.

Lee Doo-won, head of the Price Trends Division at Statistics Korea, said, "As the effect of the telecommunications fee support, which was a downward factor in October, disappeared, the decline in public service prices narrowed, causing consumer prices to rise by 0.6%. However, due to reductions in petroleum prices, public service support policies in the education sector, and a slowdown in the rise of dining-out prices caused by the impact of COVID-19, the inflation rate remained low at 0%."

The core inflation rate, which excludes seasonal factors and temporary shocks such as agricultural products and petroleum prices (core inflation index), rose 1.0% compared to the same month last year.

Among the total 460 items, the living cost index, which is calculated based on 141 items with high purchase frequency and expenditure weight and sensitive to price changes, fell by 0.1% compared to the same month last year. Food prices rose by 3.7%, but non-food items fell by 2.3%.

The fresh food index increased by 13.1% compared to the same month last year. Fresh fruits rose by 25.1%, while fresh fish and fresh vegetables increased by 7.1% and 7.0%, respectively. Apple prices surged by 36.4% compared to the same month last year. Lee explained, "Although fruit prices fell by 11.2% compared to the previous month due to the autumn harvest, they continued to rise compared to the same month last year due to the base effect from the good harvest last year."

By expenditure purpose, compared to the same month last year, food and non-alcoholic beverages (6.9%), food services and accommodation (1.0%), other goods and services (2.1%), health (1.5%), clothing and footwear (0.6%), housing, water, electricity, and fuel (0.1%), and household goods and household services (0.2%) increased. Alcohol and tobacco remained unchanged, while recreation and culture (-0.5%), communication (-1.6%), education (-2.1%), and transportation (-4.3%) decreased.

By item nature, rent rose 0.6% compared to the same month last year, pushing service prices up by 0.4%. The rent increase rate is the highest since June 2018 (0.6%). In particular, jeonse prices jumped 0.8%, marking the highest increase in 23 months since December 2018, when it rose 0.9%.

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