Consumer prices rise 2% in February, on gov't target for 2nd straight month
This undated file photo shows a supermarket in Seoul. Yonhap
Korea's consumer prices rose 2 percent from a year earlier in February, unchanged from the previous month and precisely meeting the inflation target, government data showed Friday.
The reading marks the smallest on-year increase since August, when the figure stood at 1.7 percent, according to the Ministry of Data and Statistics.
It also marks the second consecutive month that inflation met the Bank of Korea's (BOK) 2 percent target, and the sixth straight month the growth pace remained at 2 percent or above.
In February, petroleum prices decreased 2.4 percent on-year, marking the first drop in six months. The figure does not reflect the recent hike in oil prices sparked by the Iran crisis.
Prices of agricultural, livestock and fishery products went up 1.7 percent, rising at a slower pace than the previous month, mainly thanks to a sharp drop in vegetable prices. Prices of livestock products, however, jumped 6 percent on-year, marking the highest growth in six months.
The ministry said the Fair Trade Commission's recent investigation into price fixing allegations involving flour and sugar producers is attributable to limited price growth of processed food products.
Discount events held around the Lunar New Year holiday in February also helped food prices to increase at a slower pace, it added.
Service prices went up 2.6 percent, marking the sharpest on-year gain since January 2024, due to a hike in prices of private services related to traveling and accommodation during the traditional holiday.
Prices of industrial goods increased 1.2 percent, while electricity, gas and water rates rose 0.2 percent.
Core inflation, which excludes volatile food and energy prices, went up 2.3 percent on-year last month, the ministry said.
Inflation outlook for March, however, is pessimistic, with the turmoil in the Middle East pushing up oil prices.
BOK Deputy Gov. Kim Woong said earlier in the day rising oil prices is adding upward pressure on costs, though slower gains in agricultural and livestock prices are expected to offset some of the pressure.
Korea, which depends heavily on imports for energy, is particularly vulnerable to external price shocks, which often drive domestic inflation.
A billboard at a gas station in Seoul shows gasoline prices surpassed the 1,800 won mark amid continuing military conflict in the Middle East, Thursday. Yonhap
To stabilize the domestic energy market, the government has vowed a stern response to unfair market practices involving energy supply and prices, with relevant authorities beginning intensive monitoring of possible price gouging practices of gas stations across the country.
As of 9 a.m., the average gasoline price in Seoul reached 1,916.5 won ($1.30) per liter, up 27.5 won from the previous day, according to data from the Korea National Oil Corp.
It marks the first time since August 2022 that Seoul's gasoline prices have surpassed the 1,900 won threshold. Korea's consumer prices rose 2 percent from a year earlier in February, unchanged from the previous month and precisely meeting the inflation target, government data showed Friday.
The reading marks the smallest on-year increase since August, when the figure stood at 1.7 percent, according to the Ministry of Data and Statistics.
It also marks the second consecutive month that inflation met the Bank of Korea's 2 percent target, and the sixth straight month the growth pace remained at 2 percent or above.
In February, petroleum prices decreased 2.4 percent on-year, marking the first drop in six months. The figure does not reflect the recent hike in oil prices sparked by the Iran crisis.
Prices of agricultural, livestock and fishery products went up 1.7 percent, rising at a slower pace than the previous month, mainly thanks to a sharp drop in vegetable prices. Prices of livestock products, however, jumped 6 percent on-year, marking the highest growth in six months.
The ministry said the Fair Trade Commission's recent investigation into price fixing allegations involving flour and sugar producers is attributable to limited price growth of processed food products.
Discount events held around the Lunar New Year holiday in February also helped food prices to increase at a slower pace, it added.
Service prices went up 2.6 percent, marking the sharpest on-year gain since January 2024, due to a hike in prices of private services related to traveling and accommodation during the traditional holiday.
Prices of industrial goods increased 1.2 percent, while electricity, gas and water rates rose 0.2 percent.
Core inflation, which excludes volatile food and energy prices, went up 2.3 percent on-year last month, the ministry said.