Consumer Price Index for February Released by Statistics Korea
Inflation remains in the 2% range for the second month
Increase slows due to falling agricultural product prices
Last month, the consumer price inflation rate remained in the 2% range for the second consecutive month. However, the rate of increase narrowed compared to the previous month due to a decline in agricultural product prices.
According to the "February Consumer Price Trends" released by Statistics Korea on the 6th, the consumer price index last month rose 2.0% compared to one year ago.
Previously, the consumer price inflation rate had been in the 1% range for three consecutive months?October (1.3%), November (1.5%), and December (1.9%) of last year?showing a slight upward trend. Then, it rebounded to the 2% range in the first month of the new year (2.2%) and has maintained a 2% range increase for two months in a row.
However, the rate of increase narrowed compared to the previous month. This is interpreted as a significant base effect caused by the sharp rise in consumer prices to the 3% range since February last year due to soaring fruit prices and rising oil prices.
The living cost index, which is composed mainly of frequently purchased items and closely reflects perceived inflation, rose 2.6% compared to one year ago. This is the highest level since July last year (3.0%).
Among these, food prices rose 2.6% compared to one year ago, with a slight decrease in the rate of increase, while non-food items rose 2.5%, similar to the previous month. The living cost index including rent and lease also rose 2.3%.
The fresh food index, which includes fish, vegetables, and fruits, fell 1.4% compared to the same month last year. This is the first negative figure since March 2022 (-2.1%). Fresh fruits dropped significantly by 5.4%, while fresh vegetables and fresh fish increased by 1.4% and 2.1%, respectively.
Last month, agricultural product prices fell 1.2% year-on-year. Vegetable prices rose by only 1.3%. However, livestock products and seafood prices increased by 3.8% and 3.6%, respectively, compared to the same month last year.
By item, the upward trends were significant for radish (89.2%), napa cabbage (65.3%), carrots (59.6%), pears (21.9%), and tangerines (15.5%), but prices fell for green onions (-31.1%), persimmons (-27.7%), tomatoes (-19.5%), cucumbers (-14.8%), strawberries (-6.9%), and rice (-3.3%).
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