July Consumer Prices Up 2.1%... Stable Around 2% for One Year

Fresh Fish and Shellfish Prices Jump 7.6%

The consumer price inflation rate has remained stable at around 2%, which is the Bank of Korea's inflation target, for a full year. However, the cost of living index rose by 2.5%, indicating that perceived inflationary pressure on consumers continues.

According to the "Consumer Price Trends for July 2025" released by Statistics Korea on August 5, the consumer price index last month increased by 2.1% compared to the same month of the previous year. The rate of increase was 0.1 percentage point lower than in June (2.2%). Since recording 2.6% in July last year, consumer prices have remained stable at or below the low 2% range.

The index excluding food and energy rose by 2.0% year-on-year. The index excluding agricultural products and petroleum increased by 2.3%.

Prices of agricultural, livestock, and fisheries products rose by 2.1% compared to the same month of the previous year. The increase was particularly significant for domestic beef (4.9%) and rice (7.6%). In particular, the price of mackerel surged by 12.6%. On the other hand, prices of pears (-37.3%), apples (-11.0%), and carrots (-41.3%) declined.

Yonhap News

Processed food prices rose by 4.1% and dining-out prices increased by 3.2% year-on-year. While the rate of increase in processed food prices was lower than the previous month (4.6%), it remained in the 4% range. Notably, prices of bread (6.4%) and coffee (15.9%) saw significant increases.

The fresh food index rose by 2.0% from the previous month, but fell by 0.5% compared to the same month of the previous year. The price of fresh fish and shellfish surged by 7.6%, marking the largest increase in two years and five months since February 2023 (8.1%). In contrast, prices of fresh vegetables (-1.5%) and fresh fruits (-3.9%) declined.

Electricity, gas, and water prices rose by 2.7% year-on-year. Overall service prices increased by 2.3% compared to the same month of the previous year. Among services, personal services rose by 3.1%, while public services increased by 1.4%.