The living cost index rose 2.5% in the previous month. The living cost index inflation rate, which was 1.5% in Aug., climbed by 1.0 percentage point (P) in just one month.
According to the National Data Agency on the 2nd, September's consumer price inflation was tallied at 2.1%. While overall consumer prices are showing signs of stability, the cost of living felt by the public remains relatively high. In particular, food prices rose 3.2% from the same month a year earlier.
Factors cited for the 1 percentage point rise in the living cost index in one month include the end of SK Telecom's bill discounts and the conclusion of discount events in the restaurant industry.
In Aug., SK Telecom cut telecom fees in half as compensation for hacking damage. As a result, public service prices fell 3.6% in Aug.
However, in September, SK Telecom ended the bill discounts. As a result, last month's mobile phone charges rose 26.7% from the previous month. This led to a 1.2% rise in public service prices (year-over-year).
Lee Du-won, deliberation director for economic trend statistics at the National Data Agency, said, "The slowdown in prices in Aug. was largely due to the temporary factor of telecom bill discounts."
◇ Eggs up 9.2%… livestock and seafood prices firm
Prices of agricultural, livestock, and fishery products in September rose 1.9% from a year earlier. Vegetables, which faced supply shortages in September last year due to extreme heat, were supplied stably this September, pushing prices down 12.3%. However, livestock and seafood prices rose 5.4% and 6.4%, respectively.
In particular, egg prices rose 9.2% from the same month a year earlier. It is the steepest increase in 3 years and 8 months since January 2022 (15.8%). The result reflects overlapping holiday demand and higher producer prices. In addition, prices of pork (6.3%), domestic beef (4.8%), and mackerel (10.7%) also increased.
Prices of industrial products rose 2.2% year-over-year, showing little difference from the overall consumer price inflation. However, processed food prices were tallied up 4.2%. Among detailed items, prices for bread (6.5%) and coffee (15.6%) increased noticeably.
Dining-out prices are also firm. They rose 3.4% from a year earlier, widening from the previous month's 3.1%. The effects came from the end of discount events the restaurant industry ran in Aug., compounded by factors pushing up delivery fees. Deputy Director General Lee said, "The rise in prices in the dining-out institutional sector reflects the end of discount events for items such as pizza and hamburgers," adding, "Higher delivery fees and labor costs were also reflected in price increases."
Petroleum product prices were tallied up 2.3% year-over-year. Petroleum prices turned upward for the first time in three months. Rising international oil prices and a weaker won had an impact.
According to the National Data Agency, personal services contributed 1.00 percentage point to September's price increase. Of this, dining out (0.49%p) and services excluding dining out (0.51%p) split the burden roughly in half. Agricultural, livestock, and fishery products and processed foods also contributed 0.15%p and 0.36%p, respectively.
Core inflation (index excluding food and energy) rose 2.0% year-over-year, with the pace accelerating from the previous month's 1.3%. This means that inflationary pressure remains even after excluding temporary factors.
The government plans to focus on managing prices of everyday essentials such as food. Koo Yun-cheol, Deputy Prime Minister and Minister of the Ministry of Economy and Finance, said at the economic ministers' meeting that "to stabilize food prices fundamentally, related ministries including the Ministry of Economy and Finance, the Fair Trade Commission, the Ministry of Agriculture, Food and Rural Affairs, and the Ministry of Oceans and Fisheries will work together to conduct an in-depth analysis of the causes of rising food prices," adding, "We will review structural improvement measures such as boosting productivity and innovating distribution structures."