Consumer Prices Up 2.0% in January...Inflation Slows as Petroleum Prices Stabilize (Update)

Petroleum Prices Unchanged Year-on-Year
Strong Gains in Agricultural, Livestock, and Fishery Products
Rice Up 18.3%, Apples Up 10.8%

The consumer price inflation rate recorded its lowest increase in five months. This slowdown in the mid-2% range, which had persisted for four months, was driven by stabilized petroleum prices.

Citizens shopping at a large supermarket in Seoul. Yonhap News.

According to the "Consumer Price Trends for January 2026" released by the National Data Agency on February 3, the consumer price index last month rose by 2.0% compared to the same month last year. This marks the lowest rate of increase in five months, since August of last year (1.7%). The rate had remained in the mid-2% range in September (2.1%), October (2.4%), and December (2.3%).

The decline in the consumer price inflation rate appears to be due to petroleum prices remaining unchanged (0.0%) compared to the same month last year, which helped suppress overall inflation. In December of last year, petroleum prices had risen 6.1% year-on-year, driving the upward trend in prices.

Prices of agricultural, livestock, and fishery products rose by 2.6% compared to a year ago. In particular, rice (18.3%) and apples (10.8%) continued to post high increases, adding to the burden on household grocery expenses. Processed food prices rose by 2.8% year-on-year, maintaining the same rate of increase as the previous month.

The fresh food index fell by 0.2% compared to the same month last year. This marks a reversal from the positive growth seen in November (4.1%) and December (1.8%). However, compared to the previous month, fresh vegetable prices rose by 2.9% due to demand for the Lunar New Year holiday, indicating that there are still sources of instability in grocery prices.

The core inflation index, excluding food and energy as defined by the Organisation for Economic Co-operation and Development (OECD), rose by 2.0%. The index excluding agricultural products and petroleum increased by 2.3% year-on-year. The living cost index, which reflects perceived inflation, rose by 2.2% compared to the same month last year, a 0.6 percentage point decrease from the previous month's 2.8% increase.

Electricity, gas, and water prices rose by only 0.2% year-on-year, showing signs of stability. Overall service prices increased by 2.3%. Among these, personal services rose by 2.8%, while public services increased by 1.6%, respectively.