June Consumer Prices Up 2.7%... Slowdown to 2% Range in 21 Months (Update)

Last month, the consumer price inflation rate entered the 2% range for the first time in 21 months.

On the 4th, Statistics Korea announced the "June Consumer Price Trends" report containing this information.

The consumer price index for June rose 2.7% compared to the same month last year, narrowing the increase by 0.6 percentage points from the previous month (3.3%). This is the first time in 21 months since September 2021 (2.4%) that the inflation rate has entered the 2% range.

The core consumer price index, excluding agricultural products and petroleum, rose 4.1% compared to the same month last year. This increase rate is the lowest since May last year (4.1%). Petroleum prices fell 25.4% compared to the same month last year, marking the largest decline since related statistics began in January 1985.

On the 30th, milk is displayed at a large supermarket in Seoul, where crude oil prices are expected to increase by about 69 to 104 won per liter. Photo by Jinhyung Kang aymsdream@

Among a total of 458 items, the living cost index, compiled from 144 items that are frequently purchased and have a high expenditure share, rose 2.3% compared to the same month last year. Food prices increased by 4.7%, but prices excluding food rose only 0.8%, resulting in this outcome. The living cost index including rent rose 2.1%.

The fresh food index rose 3.7% compared to the same month last year. Fresh fish increased by 6.2%, fresh vegetables by 3.6%, and fresh fruits by 2.2%, respectively.

By expenditure purpose, compared to the same month last year, housing, water, electricity, and fuel (6.1%), food and accommodation (6.3%), food and non-alcoholic beverages (4.2%), clothing and footwear (7.8%), other goods and services (5.8%), household goods and household services (5.6%), recreation and culture (3.2%), education (1.9%), health (1.8%), communication (0.9%), and alcoholic beverages and tobacco (0.3%) all increased. Transportation (-11.0%) decreased.

By item nature, agricultural, livestock, and fishery products and industrial products each rose 0.2% compared to the same month last year. Electricity, gas, and water rose 25.9%, showing a 20% range increase for nine consecutive months since October last year (23.1%). Rent rose 0.5%, public services 1.0%, and personal services increased by 5.0%.

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