SEOUL -- South Korea has recorded an inflation rate in the two percent range for the first time in 21 months after inflationary pressures have steadily decreased.
According to data released by the state statistical information service on July 4, the consumer price index (CPI) in June 2023 stood at 11.12, up by 2.7 percent compared to the same period last year. This is the first time the inflation rate dropped below three percent since September 2021 (2.4 percent).
The inflation rate has been on a downward trend, recording a slight increase from 5.0 percent in December last year to 5.2 percent in January this year and steadily declining to reach 3.3 percent in May. The decrease in inflationary pressures was affected by the lowered price of petroleum products, which saw a 25.4 percent decline on-year.
The index that shows the core inflation rate, excluding inflation rates of agricultural and petroleum products, has rose 4.1 percent, marking the lowest point since May 2022. The core inflation rate reflects the basic inflation trend.
"With the decline in petroleum prices and the deceleration of the services sector's growth rate, the overall consumer price inflation rate has reached the 2 percent range for the first time since September 2021," Statistics Korea official Kim Bo-kyung said in a statement.
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