Inflation loses pace in November, still remains above 3 percent

Apple prices rose 55.5 percent on year, according to Statistics Korea on Tuesday. [NEWS1]

Domestic inflation grew at a slower pace in November but stayed above 3 percent for the fourth consecutive month amid high prices of farm goods and energy sources.

Consumer prices, a key gauge of inflation, rose 3.3 percent last month from a year earlier, compared with a 3.8 percent on-year increase the previous month, according to the data from Statistics Korea on Tuesday.

It is the first time in four months that the annual price growth has eased.

The on-year price growth fell below 4 percent in April for the first time in more than a year and had been on a constant decrease to fall to a 25-month low of 2.3 percent in July.

But the figure rose to 3.4 percent in August and 3.7 percent in September due mainly to high oil costs and increasing prices of some farm goods.

Agricultural produce prices, in particular, rose 13.6 percent, the largest increase in 30 months since May 2021.

Apple prices jumped 55.5 percent, tomato prices rose 31.6 percent, tangerine prices rose 16.7 percent, and rice prices gained 10.6 percent.

The fresh food index, which consists of items with large price fluctuations depending on weather conditions or seasons, such as fish, vegetables and fruits, rose 12.7 percent.

The fresh fruit index jumped 24.6 percent, continuing its upward trend in the 20 percent range from the previous month, which was at 26.2 percent.

The Consumer Price Index for living necessities, consisting of frequently purchased items and used as a measure of perceived prices for consumers, rose 4 percent.

The government has said that inflationary pressure is forecast to ease at a slower pace than earlier expected and to stay over 3 percent through the end of this year before reaching its target rate of 2 percent by around the end of 2024.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]