October Consumer Prices Up 1.3%... Lowest in 3 Years and 9 Months (Update)

Statistics Korea, October Consumer Price Trends

Last month, the consumer price inflation rate continued its streak of over 1% for the second consecutive month, rising by 1.3%.

According to the 'October Consumer Price Trends' released by Statistics Korea on the 5th, the consumer price index last month increased by 1.3% compared to the same period last year.

The consumer price inflation rate had maintained a level in the 2% range for five consecutive months since April (2.9%), but dropped to the 1% range in September (1.6%) and continued in the 1% range for two consecutive months.

The 1.3% increase is the smallest rise in 3 years and 9 months since January 2021 (0.9%).

The core inflation index, which excludes agricultural products and petroleum, rose by 1.7% compared to the same month last year. The index excluding food and energy increased by 1.8% compared to the same month last year.

The living expenses price index rose by only 1.2% compared to a year ago. The living expenses price index peaked at 4.6% in October last year, fluctuated around the 3% range this year, and then the increase sharply slowed to 1.5% last month.

The living expenses price index is compiled by selecting 144 items that are frequently purchased and have a large expenditure share, which consumers are sensitive to in terms of price changes. Among these, food prices rose by 2.5% compared to a year ago, showing a slowdown in the increase, while non-food items rose by 0.4%, recording an inflation rate below 1%. The living expenses price index including rent rose by 1.1%.

The fresh food index rose by 1.6% compared to the same month last year, a significant decrease from the previous month’s increase of 3.4%. Fresh fruits dropped sharply by 10.7%, while fresh vegetables and fresh fish increased by 15.7% and 0.2%, respectively.

By item, radish (Mu) recorded the largest increase at 52.1%. The rise in napa cabbage (Baechu) (51.5%) somewhat slowed, and lettuce (Sangchu) (49.3%), pumpkin (Hobak) (44.7%), seaweed (Gim) (33%), and tomato (21.3%) also showed considerable increases. However, apples (-20.0%), green onions (-13.9%), potatoes (-11.4%), rice (-8.7%), and grapes (-6.5%) declined.