Consumer prices rise 2.1% in July on higher industrial goods, service costs
People shop at a supermarket in Seoul, July 22. Yonhap
Korea's consumer prices grew by more than 2 percent for the second consecutive month in July, mainly driven by higher costs of industrial goods and services, government data showed Tuesday.
Consumer prices, a key gauge of inflation, increased 2.1 percent from a year earlier last month, according to the data from Statistics Korea.
Inflation had remained above the Bank of Korea's 2 percent target for four consecutive months through April before slowing to 1.9 percent in May. It then edged up to 2.2 percent in June.
The statistics agency said the July gain was mainly due to the continued depreciation of the Korean won, which pushed up import prices for industrial goods. A steady increase in service prices also added to inflationary pressure.
Among industrial goods, prices of processed food products jumped 4.1 percent on-year, adding 0.35 percentage point to July's overall inflation.
While agricultural product prices inched down 0.1 percent from a year earlier, prices of livestock and fisheries products rose 3.5 percent and 7.3 percent, respectively.
In contrast, petroleum product prices fell 1 percent on-year, reversing an increase in the previous month.
The service sector continued its upward trend, posting a 2.3 percent on-year gain.
Within the sector, utility costs, such as electricity and gas, increased 1.6 percent, while water charges advanced 2.7 percent.
Among personal services, prices for dining out rose 3.2 percent from a year earlier, and non-dining services climbed 3.5 percent.
Core inflation, which excludes volatile food and energy prices, went up 2 percent in July, matching the previous month's increase.