Consumer prices up 2.8% in July; oil price hike slows

Oil prices are displayed at a gas station in Seoul, Sunday. Yonhap

Korea's consumer prices rose 2.8 percent in July from a year earlier as oil prices remained elevated, though their rate of increase slowed, data showed Tuesday, with inflation falling below the 3 percent mark for the first time in three months.

According to data from the Ministry of Data and Statistics, the increase slowed from a 3.1 percent and 3.2 percent on-year rise posted in May and June, respectively.

Consumer price growth apparently slowed in July from a month earlier as oil prices showed signs of stabilization, although they remained significantly high compared with 2025.

The report showed oil product prices rose 15.5 percent from a year earlier in July, remaining elevated but slowing from the 24.7 percent on-year increase posted in June.

Oil prices accounted for 0.6 percentage point of consumer price growth in July, compared with 0.93 percentage point in June.

Diesel and gasoline prices, in particular, remained elevated in July, rising 21.5 percent and 12.6 percent, respectively.

The report showed prices of overall industrial products rose 3.7 percent from a year earlier in July.

Prices of agricultural, livestock and fishery products increased 0.9 percent, led by higher beef and rice prices.

Service prices rose 2.6 percent from a year earlier, driven by higher insurance costs.

Core inflation, which excludes volatile food and energy prices, also advanced 2.6 percent compared with July last year, the latest findings showed. It was the sharpest growth since the 2.8 percent growth posted in December 2023.