Korea's inflation slows to 1.6% in September, first drop below 2% in more than 3 years

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Korea's inflation slows to 1.6% in September, first drop below 2% in more than 3 years

Published: 02 Oct. 2024, 08:29 Updated: 02 Oct. 2024, 09:54

SHIN HA-NEE
shin.hanee@joongang.co.kr

Prices are displayed at a gas station in downtown Seoul on Aug. 25. [NEWS1]

Korea’s inflation fell below the 2.0 percent mark in September for the first time in more than three years, primarily due to lower fuel prices.

The significant deceleration may further strengthen the case for a potential interest rate cut at the upcoming Monetary Policy Board meeting on Oct. 11.

The consumer price index, a key measure of inflation, rose 1.6 percent on year last month, according to data from Statistics Korea released Wednesday.

It is the first time the yearly increase has fallen into the 1 percent range since March 2021, when on-year inflation was 1.9 percent. This also marked the lowest growth since the 1.4 percent recorded in February 2021.

Headline inflation has been slowing down for the third consecutive month in September, from 2.6 percent in July and 2 percent in August.

On a monthly basis, consumer prices rose 0.1 percent.

Core inflation, which excludes volatile food and energy prices, edged down to 2.0 percent from 2.1 percent in August.

The cost-of-living index, which tracks the price changes of 144 frequently purchased consumer goods and services, rose 1.5 percent, continuing its deceleration from the previous month’s 2.1 percent on-year gain.

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