July Consumer Prices Up 2.6%... Highest Again in Two Months (Update)

Electricity, Water, and Gas Up 0.3%... Inflation Rate Increases
Core Inflation Rises 1.7%, Maintaining 1% Range for 5 Consecutive Months

[Image source=Yonhap News]

[Asia Economy Reporters Son Seon-hee, Jang Se-hee] Consumer prices rose by 2.6% last month, marking a 2% range increase for four consecutive months.

According to the Consumer Price Trends report from Statistics Korea on the 3rd, the consumer price index for July recorded 107.61 (2015=100). After rising 2.3% in April, it increased by 2.6% in May and 2.4% in June, maintaining a 2% range increase for four consecutive months.

Eo Un-seon, Director of Economic Trend Statistics at Statistics Korea, explained, "Prices of personal services, agricultural and livestock products, and petroleum products continued to rise, resulting in an increase rate exceeding the mid-2% range. Additionally, electricity, gas, and water prices turned upward, expanding the rate of increase compared to the previous month."

In July, compared to the same month last year, prices of industrial products, services, agricultural, livestock and fishery products, electricity, water, gas, and rent all increased.

First, industrial products rose by 2.8%. The increase was led by petroleum product prices such as diesel (21.9%) and gasoline (19.3%).

Agricultural, livestock, and fishery products continued their upward trend with a 9.6% increase. Notably, eggs (57.0%), garlic (45.9%), red pepper powder (34.4%), and rice (14.3%) saw significant price hikes.

Electricity, water, and gas prices rose by 0.3%, marking a shift to an upward trend. This was due to a reduction in electricity bill discounts and the disappearance of the effect of city gas price cuts.

Rent increased by 1.4%, the highest rise since November 2017 (1.4%). Jeonse (long-term deposit rent) rose by 2.0%, and monthly rent increased by 0.8%.

Meanwhile, the core inflation rate (index excluding agricultural products and petroleum) rose by 1.7%, showing a 1% range increase for five consecutive months following March (1.0%), April (1.4%), May (1.5%), and June (1.5%).

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