April Consumer Price Inflation Rate at 3.7%... Enters 3% Range for the First Time in 14 Months (Update)

Statistics Korea, April Consumer Price Trends

Last month, the consumer price inflation rate recorded a figure in the 3% range for the first time in 14 months. Statistics Korea explained this was due to petroleum prices falling at the largest rate in 35 months, along with a slowdown in the rise of prices for industrial products, agricultural and livestock products, and electricity and gas.

On the 2nd, Statistics Korea released the "April Consumer Price Trends" report containing these details.

According to the report, the consumer price index for April rose 3.7% compared to the same month last year, narrowing the increase by 0.5 percentage points from the previous month (4.2%). This is the first time in 14 months since February last year (3.7%) that the consumer price inflation rate has been in the 3% range.

The core price index excluding agricultural products except grains and petroleum-related items (401 out of 458 items), which is the Korean-style core price index, rose 4.6% compared to the same month last year, showing a 0.2 percentage point slowdown from the previous month (4.8%).

The core price index excluding food and energy items (309 out of 458 items), calculated using the Organization for Economic Cooperation and Development (OECD) method, rose 4.0% compared to the same month last year.

The living cost index, calculated from 144 items out of the total 458 items that are frequently purchased and have a high expenditure share, rose 3.7% compared to the same month last year. Food prices increased by 6.2%, non-food items by 2.2%, and the living cost index including rent rose 3.3%.

The fresh food index rose 3.1% compared to the same month last year. Fresh fish and shellfish increased by 6.1%, fresh vegetables by 7.2%, while fresh fruits declined by 2.7%.

By expenditure purpose, compared to the same month last year, housing, water, electricity, and fuel rose 6.1%, food and accommodation 7.6%, food and non-alcoholic beverages 5.0%, other goods and services 8.6%, clothing and footwear 6.1%, household goods and household services 5.2%, recreation and culture 3.8%, education 2.2%, health 1.4%, communication 0.9%, and alcoholic beverages and tobacco 0.5%. In contrast, transportation fell by 6.0%.

By item nature, goods rose 3.4% compared to the same month last year. Agricultural, livestock, and fishery products increased by 1.0%, industrial products by 2.0%. In particular, electricity, gas, and water rose 23.7%. However, petroleum prices rose 1.3% from the previous month but fell 16.4% compared to the same period last year.

Services rose 4.0% compared to the same month last year. Rent increased by 0.8%, public services by 1.0%, and personal services by 6.1%.

Kim Bo-kyung, Director of Economic Trend Statistics at Statistics Korea, said, "Considering the base effect from last year's significant price increases, prices are expected to stabilize in the second half of this year. However, there are still many uncertainties such as the timing of electricity and gas rate hikes, international oil price increases, and exchange rates."

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