Consumer Prices Rise After Two Months... 'Vegetable and Meat Prices' Jump (Update)

Statistics Korea, July Consumer Price Trends

[Sejong=Asia Economy Reporter Joo Sang-don] Consumer prices recorded an increase again after two months. In particular, prices of vegetables such as cabbage and onions, as well as meat prices including pork and domestic beef, rose significantly.

According to the July Consumer Price Trends released by Statistics Korea on the 4th, the Consumer Price Index stood at 104.86 (2015=100), up 0.3% compared to the same month last year. This marks a rise after two months since April this year (0.1%).

The consumer price inflation rate, which had remained below 1% for 12 consecutive months last year, recorded a 1% range from January to March this year. However, as the impact of the novel coronavirus infection (COVID-19) began to be reflected, it dropped to 0.1% in April, then -0.3% in May, and remained flat at 0% in June.

The core inflation rate, which excludes seasonal factors and temporary shocks such as agricultural products and petroleum, rose 0.7% compared to the same month last year.

The fresh food index increased by 8.4% compared to the same month last year. This is the largest increase since November 2018 (10.5%). In particular, fresh vegetables rose by 16.5%. Prices of cabbage (35.7%), sweet potatoes (37.0%), onions (39.9%), and lettuce (35.9%) increased significantly.

Meat prices also surged. Agricultural and livestock products rose 6.4% compared to the same month last year. Pork and domestic beef increased by 14.3% and 9.8%, respectively.

On the other hand, industrial products fell by 0.4%, electricity, water, and gas decreased by 4.5% compared to the same month last year. Public services also dropped by 1.9%.