March Consumer Prices Rise 4.1%... First 4% Increase Since December 2011 (Update)

Published 05 Apr.2022 08:10(KST)

[Asia Economy Sejong=Reporter Kim Hyewon] The consumer price inflation rate in March surged to the 4% range for the first time in about 10 years. Analysts attribute this to the impact of the Ukraine crisis, which caused a sharp rise in international oil prices that began to be fully reflected in domestic prices starting last month.

According to the consumer price trends for March announced by Statistics Korea on the 5th, the consumer price index last month was 106.06 (2020=100), up 4.1% compared to the same month last year.

The consumer price inflation rate rose to the 3% range for the first time in 9 years and 8 months in October last year (3.2%), then maintained the 3% range for five months from November (3.8%), December (3.7%), January this year (3.6%), and February (3.7%), before exceeding 4% last month. The last time consumer prices showed a 4% inflation rate was in December 2011 (4.2%), over 10 years and 3 months ago.

Last month's price increase was driven by petroleum products and other industrial goods. Petroleum products (31.2%) rose the most since November last year (35.5%). Service prices increased by 3.1%, with personal services up 4.4%, public services up 0.6%, and rent rising 2.0%. In particular, dining out among personal services rose 6.6%, marking the largest increase since April 1998 (7.0%).

The core inflation rate, which shows the underlying trend of prices excluding agricultural products and petroleum, rose 3.3%, the largest increase since December 2011 (3.6%). The living cost index, which reflects perceived inflation, rose 5.0%.

Eo Unseon, Director of Economic Trend Statistics at Statistics Korea, said, "Prices of industrial products such as petroleum and processed foods, as well as personal services like dining out, continued to rise," adding, "The expansion of the increase is mostly due to the rising prices of petroleum products."