The consumer price inflation rate in January was 2%. As international oil prices fell, the pace of price increases slowed for the second straight month.
According to the "January consumer price trends" that the Ministry of Data and Statistics (MODS) released on the 3rd, last month's consumer price index was 118.03 (2020=100), up 2% from a year earlier. Recent inflation rates were ▲2.1% in September last year ▲2.4% in October ▲2.4% in November ▲2.3% in December. Following December last year, the rate of increase slowed for two consecutive months.
As international oil prices fell, the inflation rate for petroleum products was flat. It sharply reduced the pace of increase from a month earlier (6.1%). Last month, international oil prices averaged $61.7 per barrel based on Dubai crude, down $18.7 from January last year ($80.4).
Prices of agricultural, livestock and fishery products rose 2.6%. The pace of increase slowed from a month earlier (4.1%), marking the lowest increase in four months since September last year. Lee Du-won, Deputy Director General for economic trend statistics at the Ministry of Data and Statistics (MODS), said, "With increased shipments of tangerines and higher imports of cherries, the pace of price increases for fruit has slowed," and "For vegetables, increased cultivation areas for napa cabbage and radishes boosted shipments, widening the decline in prices."
However, some items saw sharp price increases, including rice (18.3%), apples (10.8%), lettuce (27.1%), yellow croaker (21%) and mackerel (11.7%). Due to the spread of highly pathogenic avian influenza (AI), egg prices also recorded a high rate of increase (6.8%). In particular, fishery products and livestock products rose 5.9% and 4.1%, respectively, amplifying the overall increase in agricultural, livestock and fishery prices. The Deputy Director General said, "With price measures for Lunar New Year essentials in place, prices should stabilize in February."
The service price inflation rate was 2.3%. The Deputy Director General said, "Outpatient and inpatient medical fees increased due to some medical fee hikes at the start of the year, and sewerage fees were raised in Seoul and Busan."
The living price index, which reflects perceived prices and is composed mainly of frequently purchased items, rose 2.2%. The fresh food index, which reflects "dining table prices," fell 0.2%.
The index excluding food and energy, a core inflation gauge used by the Organisation for Economic Co-operation and Development (OECD), rose 2%. Another core inflation gauge, the index excluding agricultural products and petroleum products, rose 2.3%.