Consumer Prices Rise Over 2% for Third Consecutive Month... 'Living Costs' Lowest in 11 Months (Update)

Statistics Korea, Consumer Price Trends
Frequently Purchased 144 Items' Living Prices Enter 2% Range

Last month, the consumer price inflation rate recorded 2.4%, maintaining a 2% range for the third consecutive month. The living cost index entered the 2% range, showing the lowest rate of increase in 11 months.

According to the 'June Consumer Price Trends' released by Statistics Korea on the 2nd, the consumer price index last month rose 2.4% compared to the same month last year. This marks the third consecutive month in the 2% range following April (2.9%) and May (2.7%), and it is the lowest inflation rate so far this year.

The consumer price inflation rate, which slowed down to 2.8% in January, surged above 3% again in February (3.1%) and March (3.1%) due to a sharp rise in fruit and vegetable prices, before falling back to the 2% range from April onward.

The core inflation index, excluding agricultural products and petroleum, rose 2.0% compared to the same month last year. The index excluding food and energy increased by 2.2% compared to the same month last year.

[Image source=Yonhap News]

The living cost index rose by only 2.8% compared to a year ago, marking the lowest increase in 11 months since July 2023 (2.0%). After peaking at 4.5% in October last year, the living cost index's rate of increase slowed down until January this year (3.4%), then continued to rise consecutively in February (3.7%) and March (3.8%).

The living cost index is compiled by selecting 144 items that consumers frequently purchase and that have a large expenditure share, making consumers sensitive to price changes. Among these, food prices surged 3.4% compared to a year ago. Non-food items rose by 2.4%. The living cost index including rent and lease increased by 2.4%.

The fresh food index surged 11.7% compared to the same month last year. Fresh fruits rose the most sharply by 31.3%. In contrast, fresh vegetables and fresh fish fell by 0.8% and 1.4%, respectively.

By item, pears, which have increased in consumption as a substitute for apples, recorded the largest increase at 139.6%, followed by apples (63.1%), tomatoes (18.0%), sweet potatoes (17.9%), and rice (6.6%), which all rose significantly. On the other hand, mackerel (-7.9%), domestic beef (-2.2%), chicken (-9.1%), and oriental melons (-13.6%) declined.