The consumer price index rose 1.9% in December. This marks four consecutive months of inflation in the 1% range from September to this month. Although inflation remains at a stable level below 2%, the rate of increase expanded slightly compared to the previous month due to rising prices of oil and agricultural, livestock, and marine products.
According to the 'December consumer price trend' released by Statistics Korea on the 31st, the consumer price index last month was 114.91 (2020=100), a 1.9% increase from the same month of the previous year. The recent inflation rate has remained in the 1% range, recording 1.6% in September, 1.3% in October, 1.5% in November, and 1.9% in December.
However, the rate of increase expanded compared to the last two months. The oil prices, which had contributed to the slowdown in inflation, shifted to an upward trend, influencing the overall rise. Oil prices increased by 1% compared to the same month of the previous year. Last month, they had decreased by 5.3%, but turned 'plus' (+).
Kong Mi-sook, a statistics review official at Statistics Korea, explained, 'The change in oil prices is due to the impact of the exchange rate rise, the base effect of the previous year's decline, and changes in the oil tax reduction rate.'
With the rise in oil prices, the prices of some processed foods such as bread, coffee, biscuits, and bottled water also increased, leading to a 1.4% rise in the prices of industrial goods compared to the same month the previous year.
The increase in agricultural, livestock, and marine product prices also contributed. These prices rose by 2.6% compared to the same month of the previous year. The price of tangerines jumped by 32.4%, while radishes (98.4%), tomatoes (20.6%), cabbages (26.4%), carrots (65.5%), gim (34.3%), and pork (6.5%) also saw significant increases. In particular, vegetable prices rose by 10.7%, expanding the rate of increase. Additionally, the prices of electricity, gas, and water rose by 3%.
The inflation rate of service prices was 2.1%. In particular, the inflation rate for personal services, including dining out, was strong at 2.9%. The increase rates for rent and public services, which are other components of service prices, remained at 0.6% and 1%, respectively.
The living price index, which reflects the perceived inflation based on 144 items with high purchase frequency and expenditure proportion, rose by 2.2% compared to the same month of the previous year. The fresh food index increased by 2.9% year-on-year, expanding the rate of increase from the previous month (0.4%), which was the lowest level in about three years.
The core inflation rate, based on the Organisation for Economic Co-operation and Development (OECD) standard that excludes food and energy, rose 1.8% compared to the same month of the previous year, and the domestic standard index that excludes agricultural products and oil also increased by 1.8%.