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E-mail Xinhua, February 5, 2025
SEOUL, Feb. 5 (Xinhua) -- South Korea's consumer price posted the fastest increase in six months due to expensive crude oil and the local currency's depreciation, statistical office data showed Wednesday.
The consumer price index (CPI) advanced 2.2 percent in January from a year earlier, said the Statistics Korea, marking the swiftest gain since July last year and rising above the central bank's mid-term inflation target of 2 percent in five months.
The headline inflation showed an upward tendency in recent months from 1.3 percent in October to 1.5 percent in November and 1.9 percent in December last year.
The central bank, the Bank of Korea (BOK), cut its benchmark interest rate by 25 basis points in October and November last year each to 3.00 percent.
The faster inflation was affected by higher global prices for crude oil and the South Korean currency's descent against the greenback.
The price for Dubai crude, South Korea's benchmark, went up from 72.6 U.S. dollars per barrel in November last year to 73.2 dollars in December and 80.4 dollars in January.
The won's rate against the U.S. dollar hovered above 1,400 won per dollar beginning December last year.
Oil products prices soared 7.3 percent in January from a year earlier, pulling up the overall headline inflation by 0.27 percentage points.
Prices for gasoline and diesel jumped 9.2 percent and 5.7 percent each last month.
Prices for industrial products, including oil products, gained 2.2 percent in January, contributing the consumer price inflation by 0.73 percentage points.
The processed food prices climbed 2.7 percent in January on a yearly basis, higher than an expansion of 2.0 percent in the previous month.
Prices for agricultural, livestock and fishery products grew 1.9 percent last month, lower than a growth of 2.6 percent in the prior month.
Agricultural products prices added 0.6 percent despite a relatively rapid increase in vegetable prices, which advanced 4.4 percent last month.
Prices for napa cabbage, white radish and carrot spiked in double digits, but those for green onion, cucumber and persimmon declined in double figures.
Prices for livestock and fishery products went up 3.7 percent and 2.6 percent respectively.
Prices for electricity, natural gas and tap water swelled 3.1 percent, pulling up the overall inflation by 0.12 percentage points.
City gas charges, heating costs and waterworks fees mounted in single digits, but the electricity bill was down 0.4 percent.
Private service prices, including eating-out costs, jumped 3.2 percent last month, raising the headline inflation by 1.09 percentage points, while public service prices increased 0.8 percent.
The eating-out expense grew 2.9 percent, and the private service price excluding the dining-out cost picked up 3.5 percent on the back of higher insurance service fees, affected by stronger demand for overseas travel.
Housing rent, including Jeonse and monthly rent, inched up 0.6 percent in January from a year earlier.
Jeonse is South Korea's unique contract between two households where a landlord grants the two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.
The livelihood items index, which gauges the price for daily necessities, gained 2.5 percent in January on a yearly basis after rising 2.2 percent in the previous month.
The fresh food index, which measures the price for fish, shellfish, fruit and vegetables, added 0.7 percent last month, lower than an increase of 2.9 percent in the prior month.
Demand-side inflationary pressure remained relatively low. The core consumer price index, which excludes volatile agricultural and oil products, appreciated 2.0 percent in January.
The OECD-method core price, excluding volatile energy and food costs, was up 1.9 percent. Enditem
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