Korea’s consumer prices hit lowest rate in nearly four years in October

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Korea’s consumer prices hit lowest rate in nearly four years in October

Published: 05 Nov. 2024, 10:50

Customers shop at a Lotte Mart in Seoul on Sunday. [YONHAP]

Korea's consumer prices slowed to the lowest level in nearly four years in October, staying below 2 percent for the second consecutive month, data showed Tuesday.

Consumer prices, a key gauge of inflation, rose 1.3 percent on year last month, compared to a 1.6 percent on-year increase in September, according to the data from Statistics Korea.

October's figure marked the lowest level since January 2021, when consumer prices grew 0.9 percent.

Korea's consumer inflation has stayed below 3 percent since April and fell below the target rate of 2 percent for the first time in September.

The finance ministry has said that the country is projected to reach the target rate of 2 percent by around the end of 2024, and this year's prices are projected to rise 2.6 percent.

Prices of the overall agricultural, livestock and fisheries products went up 1.2 percent on year.

Vegetables, in particular, spiked 15.6 percent amid unfavorable weather conditions.

Prices of petroleum products, however, fell 10.9 percent on year in October on easing global oil prices.

Dubai crude, Korea's benchmark, came to $74.94 per barrel on average last month, falling from $89.75 a year earlier, according to government data.

Service prices gained 2.1 percent on year in October.

Core inflation, which excludes volatile food and energy prices, added 1.8 percent, compared to a 2 percent on-year increase in September.

Prices of daily necessities — 144 items closely related to people's everyday lives, such as food, clothing and housing — climbed 1.2 percent last month, the data showed.

Gasoline and diesel prices are displayed at a gas station in Seoul on Nov. 3, 2024.

Yonhap