South Korea’s inflation accelerates in July
South Korea’s consumer inflation accelerated in July and placed at a nine-year peak touched in May. Prices of fresh food jumped due to hot weather conditions, while agricultural and oil products, housing rental, and other service costs also surged.
Statistics Korea data on Tuesday showed the consumer price index (CPI) escalated 2.6% year-on-year. This record exceeded June’s CPI and the Reuter’s forecast of both 2.4%.
The country’s CPI remained higher than the central bank’s target of 2% for four straight months.
The cost of agricultural, livestock, and fisheries climbed 9.6%, while petroleum products jumped 2.8%. Housing rentals were up 1.4%, and dining grew 2.5%.
Core CPI, which excluded volatile energy and food prices, was stagnant from June at 1.2% year-on year.
Month-on-month inflation accelerated 0.2% in July, recovering from minus 0.1% in June.
Economists noted a slowdown in inflation in the next quarters as the country strengthens COVID-19 restrictions and the base effects of oil and commodity prices dwindle.