Korea's inflation accelerates to 3.1% in February

Economy

Published: 06 Mar. 2024, 08:51 Updated: 06 Mar. 2024, 18:57

Korea's inflation accelerates to 3.1% in February

An employee at a discount mart in Seoul arranges fruits on a shelf on Wednesday. [NEWS1]

Korea’s inflation picked up by 3.1 percent on year in February, once again exceeding the 3 percent mark following a dip the previous month.

It marks an acceleration in inflation after three months of slowdown.

The consumer price index, a barometer of inflation, rose 3.1 percent last month compared to the same period a year prior, according to Statistics Korea’s latest data released on Wednesday.

The figure is higher than January's 2.8 percent.

“The government takes the recent situation regarding consumer prices seriously, and will strive to ensure inflation goes down to the 2 percent range as soon as possible,” said Choi Sang-mok, minister of economy and finance and deputy prime minister, during a ministerial meeting on inflation held Wednesday in central Seoul.

Consumer price increases hovered above the 3 percent threshold from last August before falling to the 2 percent level in January for the first time in six months. However, the recent easing of inflation was interrupted by the latest uptick.

As prices of fresh food in particular surged steeply, driven by a whopping 41.2 percent on-year increase in fruit prices that constituted the biggest spike since the 43.9 percent jump logged in September 1991, the minister vowed to prioritize reining in price hikes in agricultural, marine and livestock products.

Finance Minister Choi Sang-mok speaks during a ministerial meeting on inflation held on Wednesday at the government complex in central Seoul. [YONHAP]

“Through March and April, the government will pour 60 billion won ($44.9 million), a record amount, to support price discounts of agricultural, livestock and marine products in order to bring down the perceived prices of key food products such as apples and pears by up to 40 to 50 percent,” Choi promised.

The cost-of-living index rose by 3.7 percent year on year and 0.6 percent from the previous month, while the price index for fresh food saw a 20 percent increase on year and 0.2 percent on month.

Agricultural products witnessed an 11.4 percent on-year increase in prices, while industrial products rose 2.1 percent. The utility sector — including water, gas and electricity — saw a 4.9 percent rise and the service sector 2.5 percent.

The production of fruits like apples decreased last year due to a depressed harvest. Insufficient fruit stocks, as a result, further pushed up the prices of seasonal fruits like tangerines.

The price of apples jumped 71 percent on year and tangerines saw a 78.1 percent surge. Green onion prices also soared by 50.1 percent.

Meanwhile, prices of marine products rose 1.4 percent on year and vegetables 12.3 percent during the same period.

The Korea Agro-Fisheries Trade Corporation plans to directly import popular fruits such as bananas and oranges to supply them at lower prices, according to the finance minister. The government will further reduce tariffs on three imported fruit products — mandarins, durians, and pineapple juice.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]