By Yoon Ja-young
Staff Reporter
Consumer prices were 5.1 percent higher in September than a year ago, and while the inflation rate fell for the second consecutive month after peaking at 5.9 percent increase in July, the core consumer price index (CPI), which better reflects inflation, rose to its highest level in 10 years.
According to the National Statistical Office (NSO), consumer prices rose 5.1 percent in September year-on-year, gaining 0.1 percent from the previous month. Inflation has been stabilizing for two months in a row, but 5.1 percent is still far above the Bank of Korea's (BOK) target of 3.5 percent.
Falling oil prices helped inflation stabilize. Dubai crude, the country's main oil supply, fell to below $100 after trading at above $130 two months ago. Oil product prices rose 4.7 percent in September from the previous month. Compared with the previous year, however, they were 21.4 percent higher.
Prices of daily necessities rose 5.5 percent. Pork prices rose near 30 percent, and eggs over 20 percent.
However, core CPI, which excludes volatile prices of agricultural goods and oil goods, recorded 5.1 percent growth, the biggest rise since 1998.
``The increased pace of consumer prices has slowed for two months in a row thanks to falling international oil prices. But the core CPI continued to rise as there is a time gap for it to be reflected in services and manufacturing,'' the Ministry of Strategy and Finance said.
Manufacturing products rose 9.3 percent. Public service fees gained 1.6 percent, and private services 5.3 percent. Housing rent rose 2.4 percent.
Analysts said the inflationary pressure is lingering. ``The burden of inflation will delay recovery of private consumption as core inflation continues the upward trend,'' said Kim Jong-su, an analyst at NH Investment and Securities. He said global oil and other commodity prices, the direction of the won-dollar rate, and the rise of public services fees will determine the rate of inflation in the future.