April Consumer Prices Up 2.3%... Largest Increase in 3 Years and 8 Months (Update)

April Consumer Price Trends

[Sejong=Asia Economy Reporter Son Seonhee] Last month, the consumer price index rose at the largest rate in 3 years and 8 months. Due to the rise in international oil prices, petroleum product prices jumped into double digits, and the prices of agricultural, livestock, and fishery products saw significant increases, with egg prices continuing their high climb influenced by avian influenza (AI), among other factors.

According to the 'April Consumer Price Trends' released by Statistics Korea on the 4th, the consumer price index last month increased by 2.3% compared to the same month in 2019. This is the largest increase since August 2017 (2.5%).

The consumer price index recorded a 0.5% increase (year-on-year) in December last year, then steadily rose to 0.6% (January), 1.1% (February), and 1.5% (March) this year, surpassing 2% last month. It is the first time since November 2018 that the inflation rate has reached the 2% range.

In particular, poor crop yields and the impact of AI caused food prices such as vegetables and fruits to rise sharply, pushing up dining table prices. The price of green onions soared by 270% compared to April last year, nearly quadrupling. Apple prices also rose by 1.5 times (51.5% increase), and other items such as eggs (36.9%), red pepper powder (35.3%), and pork (10.9%) showed high inflation rates.

The service sector also saw overall price increases, with rent rising by 1.2% compared to the same period last year. Notably, the jeonse (long-term lease) increase rate was 1.2%, the highest since December 2017 (1.2%). Monthly rent also rose by 0.7%, marking the largest increase in six and a half years since October 2014.

Eo Unseon, Director of Economic Trend Statistics at Statistics Korea, stated, "There were multiple upward factors from both supply and demand sides, such as rising international oil prices and improved economic sentiment." He added, "Considering the base effect from low prices in the second quarter of last year, the upward trend is likely to continue for some time. However, prices of agricultural, livestock, and fishery products have shown signs of slowing since last month, and according to experts, international oil prices are not expected to continue rising significantly, so we expect prices to stabilize in the second half of the year."

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