The consumer price inflation rate in September slowed to 2.9%, marking a return to the 2% range for the first time in two months. While the price increases for agricultural, livestock, and fishery products, as well as public services, moderated, prices for petroleum products such as diesel and gasoline continued to rise at double-digit rates. Prices for certain items, including vegetables, processed foods, and electronics like mobile phones and computers, also saw significant increases.
According to the National Data Agency on October 2, the consumer price index for September stood at 120.43 (2020=100), reflecting a 2.9% increase compared to the same month last year. This figure is 0.2 percentage points lower than the 3.1% increase recorded in August. Month-over-month, prices rose by 0.3%.
The slowdown in inflation was influenced by the price trends of agricultural, livestock, and fishery products, which fell by 0.3% compared to the same month last year, a smaller decline than the 2.6% drop in August. Public service prices increased by 1.5%, significantly down from the 6.5% rise in August, partly due to a base effect from last year's mobile phone fee reductions.
In contrast, industrial product prices rose by 4.2% year-on-year, an increase from 3.7% in August. Notably, petroleum product prices surged, with an overall increase of 14.8% compared to the previous year. Diesel prices rose by 20.0%, gasoline by 11.8%, and kerosene by 19.5%. The rise in petroleum prices contributed 0.56 percentage points to the overall consumer price inflation rate.
Electricity prices also saw a year-on-year increase of 12.4%. The rise in international oil prices affected airfares, which increased by 22.5% compared to the same month last year, up from a 14.1% rise in August, due to higher fuel surcharges.
Prices for processed foods and durable goods also increased. Processed food prices rose by 2.1% year-on-year, a larger increase than the 1.5% rise in August, reflecting sequential price hikes for bread, instant foods, and frozen products.
Lee Doo-won, an economic trends statistics officer at the National Data Agency, explained, "The increase in processed food prices has been driven by sequential price adjustments for items like bread, instant foods, and frozen products."
Durable goods prices rose by 4.9% year-on-year, up from 4.1% in August. Mobile phone prices increased by 8.3%, while computer prices surged by 27.4%. This was attributed to rising prices for semiconductors and other electronic components, as well as increases in the prices of new product releases.
Price trends for agricultural, livestock, and fishery products varied by item. Fresh vegetable prices rose by 14.3% compared to the previous month. Among key items, tomato prices increased by 47.9%, bell pepper by 79.6%, pumpkin by 75.4%, and napa cabbage by 19.1%. Year-on-year, pumpkin prices rose by 46.9%, domestic beef by 6.6%, imported beef by 7.2%, mackerel by 8.6%, and hairtail by 12.9%.
Conversely, fruit prices declined. Apple prices fell by 9.2% year-on-year, and pear prices dropped by 19.0% compared to the previous month. Fresh fruit prices decreased by 5.4% month-over-month, attributed to favorable harvest conditions and increased shipments ahead of the Chuseok holiday.
Lee noted regarding agricultural, livestock, and fishery product prices, "There were also effects from discount support, and the supply conditions leading up to Chuseok contributed to the price declines. Both factors acted in combination."
The living cost index rose by 2.5% year-on-year and 0.7% month-over-month. Food prices increased by 1.6%, while non-food items rose by 3.1%. Although the living cost inflation rate was lower than the overall inflation rate, some food and energy prices continued to rise.
The core inflation rate remained in the upper 2% range. The index excluding food and energy rose by 2.8% year-on-year, while it fell by 0.1% month-over-month. The index excluding agricultural products and petroleum rose by 2.7% year-on-year.
* This article has been translated by AI.
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