August Consumer Prices Up 2.0%... Lowest in 3 Years and 5 Months (Update)

by Jo Youjin

Published 03 Sep.2024 08:02(KST)

Updated 03 Sep.2024 09:12(KST)

Statistics Korea Announces August Consumer Price Trends

[Image source=Yonhap News]

Last month, the consumer price inflation rate recorded 2.0%, marking the lowest level in 3 years and 5 months.

According to the 'August Consumer Price Trends' released by Statistics Korea on the 3rd, the consumer price index last month rose 2.0% compared to the same period last year.

This marks the fifth consecutive month of inflation rates in the 2% range since April (2.9%). It is also the lowest inflation rate in 3 years and 5 months since March 2021 (1.9%).

The core inflation index, which excludes agricultural products and petroleum, increased by 1.9% year-on-year. The index excluding food and energy rose 2.1% compared to the same month last year.

The living cost index increased by only 2.1% compared to a year ago. The living cost index peaked at 4.6% last October, fluctuated in the 3% range this year, and then slowed to 2.8% in June.

The living cost index is compiled by selecting 144 items that are frequently purchased and have a large expenditure share, making consumers sensitive to price changes. Among these, food prices rose 2.6% compared to a year ago, showing a slowdown in the increase, while non-food items rose 1.8%, bringing the inflation rate down to the 1% range. The living cost index including rent and lease increased by 1.9%.

The fresh food index surged 3.2% compared to the same month last year, but the increase significantly slowed compared to the previous month (7.7%). Fresh fruits rose 9.6%, slowing to a single-digit increase. On the other hand, fresh vegetables and fresh fish fell by 1.7% and 0.1%, respectively.

By item, pears, which have increased in consumption as a substitute for apples, recorded the largest increase at 120.3%, while apples (17.0%), gim (seaweed) (29.8%), squid (13.5%), napa cabbage (9.6%), imported beef (8.1%), and pork (2.8%) also showed considerable increases.

Conversely, peaches (-22.8%), Korean melons (-14.6%), crabs (-10.8%), tomatoes (-10.2%), green onions (-9.9%), chicken (-8.0%), and domestic beef (-2.7%) declined.