Customers shop at a major discount chain store in Seoul on Feb. 28, 2024. (Image courtesy of Yonhap)
SEOUL, Mar. 6 (Korea Bizwire) — South Korea’s inflation ticked up to over 3 percent in a month in February on high prices of fresh food items and energy, data showed Wednesday.
Consumer prices, a key gauge of inflation, rose 3.1 percent on-year last month, compared with a 2.8 percent increase a month earlier, according to the data from Statistics Korea.
It marks the first time in four months that the price growth accelerated in an on-month term.
In January, inflation fell below 3 percent for the first time since July 2023, when the figure came to 2.4 percent, but high prices of fruits, farm produce and energy caused inflationary pressure to flare up again, officials said.
Prices of agricultural, livestock and fishery products rose 11.4 percent on-year last month.
Agricultural products, in particular, spiked 20.9 percent, which attributed a 0.8 percentage point increase in the overall inflation.
Of major items, prices of apples and tangerines surged 71 percent and 78.1 percent, respectively, and prices of 18 major kinds of fruits combined surged 41.2 percent last month, the largest increase in more than 32 years.
Prices of industrial products added 2.1 percent, driven by rising prices of imported vehicles, ice cream and clothing.
Prices of petroleum products stopped short of falling 1.5 percent in February, compared with a 5.0 percent decline the previous month amid rising global oil prices.
Dubai crude, South Korea’s benchmark, has risen recently to US$80.88 per barrel, compared with $77.33 in December and $78.85 in January, according to government data.
Service prices increased 2.5 percent on-year in February, slowing from a 2.6 percent rise a month earlier.
A signboard at a gas station in Seoul shows gasoline and diesel prices on March 3, 2024. (Image courtesy of Yonhap)
Prices of dining out went up 3.8 percent, logging the smallest growth since October 2021.
Core inflation, which excludes volatile food and energy prices, went up 2.5 percent on-year in February, unchanged from the previous month.
Prices of daily necessities — 144 items closely related to people’s everyday lives, such as food, clothing and housing — climbed 3.7 percent last month, the data showed.
The government has said that consumer prices are forecast to ease at a slower pace than earlier expected before reaching its target rate of 2 percent by around the end of 2024.
The finance ministry expected this year’s prices to grow 2.6 percent.
“The government takes the recent inflation situation seriously and will make all-out efforts to achieve the 2 percent inflation level at an early date,” Finance Minister Choi Sang-mok said while presiding over a meeting with ministers concerned.
A record budget of 60 billion won ($44.9 million) will be earmarked to implement farm produce discount programs in March and April to lower fruit prices, and the government will further lower tariffs on imported fruits.
An emergency task force will be running immediately to be in charge of monitoring prices, and any violation in relevant rules will be subject to stern punishment.
Choi also called on companies to join efforts to bring inflation under control, pointing to their reluctance to lower prices of their products though global grain and other prices have eased.
(Yonhap)
