May Consumer Prices Rise 3.3%... Lowest in 19 Months (Update)

Core inflation rises 4.3%... Lowest in 1 year
Clear downward trend in prices

Last month, the consumer price inflation rate dropped to the low 3% range, marking the lowest level in 19 months.

On the 2nd, Statistics Korea released the "May Consumer Price Trends" report containing this information.

The consumer price index for May rose 3.3% compared to the same month last year, narrowing the increase by 0.4 percentage points from the previous month (3.7%). This is the lowest inflation rate in 19 months since October 2021 (3.2%). Petroleum products fell 18.0% compared to the same period last year, marking the largest decline in three years since May 2020 (-18.5%).

The core price index, excluding agricultural products and petroleum, rose 4.3% year-on-year. This increase rate is the lowest since May last year (4.1%).

Among a total of 458 items, the living cost index, calculated from 144 items with high purchase frequency and expenditure weight that are sensitive to price changes, rose 3.2% compared to the same month last year. Food prices increased by 5.0%, but non-food items rose only 2.0%. The living cost index including rent rose 2.8%.

The fresh food index increased 3.5% year-on-year. Fresh fish and shellfish rose 6.3%, fresh vegetables increased 7.0%, while fresh fruits fell 1.4%.

By expenditure purpose, compared to the same month last year, housing, water, electricity, and fuel (5.9%), food and accommodation (7.0%), food and non-alcoholic beverages (3.9%), clothing and footwear (8.0%), other goods and services (6.4%), household goods and household services (6.0%), recreation and culture (3.8%), education (2.2%), health (1.6%), communication (0.9%), and alcoholic beverages and tobacco (0.2%) all increased. Transportation (-6.9%) decreased.

By item nature, agricultural, livestock, and fishery products fell 0.3% year-on-year, industrial products rose 1.8%. Electricity, gas, and water surged 23.2%. Rent increased 0.6%, public services rose 1.0%, and personal services increased 5.6%.