The consumer price index for February recorded an increase of 2.0%. The inflation rate slowed compared to January's 2.2%. The drop in agricultural prices helped lower overall prices, but the exchange rate recorded the high 1400s, leading to a rise of more than 6% in petroleum prices.
According to the 'February consumer price trends' announced by the Statistics Korea on 6th, the consumer price index for last month was 116.08 (2020=100), reflecting a 2% increase compared to the same month last year.
Recently, the inflation rate recorded 2% or higher until August of last year, but after recording 1.6% in September, it dropped to 1.3% in October. It then rose again to 1.5% in November, 1.9% in December, and 2.2% in January 2025, before dropping back to 2% in February.
By item, agricultural prices fell by 1.2% compared to the same month last year. The prices of fruits led the decline, dropping by 5.3% compared to the same month last year. The price drops were significant for items such as persimmons (-27.7%), melons (-26.7%), peaches (-25.7%), tomatoes (-19.5%), and watermelons (-18.4%). The price of apples, which rose sharply last year, also fell by 2.3%.
Lee Du-won, the economic statistics officer at Statistics Korea, noted that "while fruit prices are showing a declining trend, it may not be easy for the public to feel this. There is also a base effect from last year."
Petroleum prices increased by 6.3% compared to the same month last year due to the high exchange rate. The international oil price decreased from $80.9 in February last year to $78.2 in February this year, but the exchange rate rose from 1331 won to 1447 won.
Prices in livestock (3.8%), seafood (3.6%), electricity, gas, and water (3.1%), and dining out (3%) also showed relatively high growth rates, along with personal services excluding dining (2.9%).
Among industrial products, petroleum prices such as gasoline (7.2%) and diesel (5.2%) rose significantly. Charges for regional heating (9.8%), city gas (6.9%), and water supply (3.7%) also increased.
Service prices rose by 2.1% compared to the same month last year. Specifically, rent increased by 0.7%, public services by 0.8%, and dining out by 3%. Personal services excluding dining rose by 2.9%.
The core consumer price index, which excludes food and energy with high price volatility, was 112.29 (2020=100), reflecting an increase of 1.8% compared to the same month last year. This is a 0.1 percentage point decrease from the previous month.
Another core price indicator, the index excluding agricultural products and petroleum, was 114.12 (2020=100), which rose by 1.9%. The increase was reduced by 0.1 percentage points compared to the previous month.
The living price index, which reflects changes in the prices of essential goods, was 119.26 (2020=100), showing a 2.6% increase compared to the same month last year. Among these, food prices increased by 2.6%, and non-food prices by 2.5%. The living price index, including rent, recorded a growth rate of 2.3%.
The fresh food index, comprised of 55 items affected by seasonal and weather conditions, was 136.67 (2020=100), reflecting a decline of 1.4% compared to the same month last year. This marks the first decline in 35 months since March 2022 (-2.1%). Specifically, fresh fish rose by 2.1%, fresh vegetables by 1.4%, but fresh fruits dropped by 5.4%.
Lee Du-won, the economic statistics officer at Statistics Korea, explained that "Although petroleum prices increased by 6.3% compared to the same month last year, pushing overall prices up, the core inflation trend excluding petroleum remains stable at 1.8%."