Korea’s consumer price index accelerated 2-point-4 percent in June, the slowest pace in almost a year.
But high costs of fresh produce and petroleum products remain a concern.
Our business correspondent Moon Hye-ryeon reports.
Inflation in South Korea is showing signs of stabilizing in the two percent range despite continued high prices for fruit.
Data from Statistics Korea on Tuesday shows that the country’s consumer price index – a key gauge of inflation – rose by 2-point-4 percent in June compared to the same month the year before.
This is the lowest figure seen in 11 months – inching closer to the target inflation at two percent.
The rise in consumer prices hovered above three percent at the start of the year before dropping below the three percent mark in April and remaining in the two percent range for three consecutive months.
Core inflation excluding volatile food and energy prices came to 2-point-2 percent while the index measuring 144 daily necessities rose by 2-point-8 percent.
Prices for fresh produce drove these figures, with the cost of fresh fruit rising by more than 31 percent on-year.
Apple prices jumped over 63 percent while the cost of pears more than doubled.
Petroleum prices also showed the largest hike in a year and a half – surging by 4-point-3 percent – with a spokesperson from Statistics Korea claiming that this was due to the base effect of petroleum prices being low this time last year.
Speaking at a meeting to discuss these latest figures, the First Vice Minister of Economy and Finance said that this falls in line with earlier predictions from the government for prices stabilizing in the mid-two percent range in the second half of the year.
Meanwhile, the agriculture ministry pledged to stabilize the supply and demand of vegetables vulnerable to summer rain and heat, as well as preemptively managing potential risks such as diseases affecting fruit trees.
Starting yesterday, the government applied a new tariff quota to seven different types of food ingredients such as coffee concentrate, as well as extending the lowered tariffs on 28 types of fruit until the end of September.
It will also strengthen inspections on the oil market after the partial return of taxes that scaled back the fuel tax cut on gasoline from 25 percent to 20 percent.
Moon Hye-ryeon, Arirang News.
Source : Arirang TV, https://www.arirang.com/news/view?id=272732
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