The consumer price inflation rate in February was 2%. Overall prices were stable, but prices for some food items such as livestock and seafood, which saw higher demand during the Lunar New Year holiday, and for travel and lodging-related services rose sharply.
According to the "Consumer price trends in February" that the Ministry of Data and Statistics (MODS) released on the 6th, last month's consumer price index was 118.40 (2020=100), up 2% from a year earlier. Recent inflation has been easing, with increases of ▲2.4% in October last year ▲2.4% in November ▲2.3% in December ▲2% in January.
In particular, prices rose significantly for livestock products (6%) and seafood (4.4%) amid increased Lunar New Year holiday demand. Prices for domestic beef and imported beef rose 5.6% and 5%, respectively, and pork prices also climbed 7.3% as the number of hogs slaughtered fell due to African swine fever (ASF).
By contrast, prices for agricultural products such as fruit fell 1.4%. This is attributed to increased supply of agricultural products and base effects after last year's sharp price gains. Processed foods (2.1%) also saw a smaller rise.
Lee Doo-won, economic trends and statistics Deputy Director General at the Ministry of Data and Statistics (MODS), said, "Prices for products frequently used during the holiday, such as red ginseng, pancake mix, and starch syrup, fell due to Lunar New Year sales," and noted, "Discount coupons for holiday necessities also had an effect."
With travel demand concentrated during the long holiday, prices related to lodging and travel also rose sharply. Prices for personal services excluding dining out increased 3.9%, widening from the previous month's 2.8%. Passenger car rental fees jumped 37.1% due to peak-season rates, and costs for overseas group tours (10.1%), domestic group tours (9.5%), and hotel room rates (12.8%) also climbed significantly.
Last month, petroleum products turned down 2.4%. This was due to the decline in international oil prices in February. Regarding concerns about petroleum product prices amid the recent Middle East situation, the Deputy Director General said, "It will be reflected in March prices."
The living cost index, which reflects perceived prices and is composed mainly of frequently purchased items, rose 1.8%, slowing from 2.2% in the previous month. The fresh food index, which reflects "table prices," fell 2.7%, extending the decline from January (-0.2%).
The index excluding food and energy, a core inflation gauge used by the Organisation for Economic Co-operation and Development (OECD), rose 2.3%. Another core inflation gauge, the index excluding agricultural products and petroleum products, increased 2.5%. Both core inflation measures saw larger gains than in the previous month.