Key facts
- South Korea's consumer prices increased 3.2% in June compared to the previous year.
- This marks the sharpest increase since December 2023.
- Fuel prices surged by 24.7%, significantly contributing to the overall inflation.
- Gasoline prices rose 23.1% and diesel prices jumped 33.7%.
- Core inflation, excluding volatile food and energy prices, increased by 2.5%.
South Korea's consumer prices saw a significant increase of 3.2% in June compared to the previous year, marking the highest inflation rate in 30 months. This acceleration is largely attributed to the impact of the Middle East war on global supply chains and oil prices.
Data from the Ministry of Data and Statistics revealed that industrial product prices rose by 4.4%, with fuel prices being a major driver, shooting up by 24.7%. Gasoline prices increased by 23.1%, and diesel prices jumped by 33.7%. The country's heavy reliance on energy imports makes it particularly susceptible to global price fluctuations.
Prices for agricultural and fishery products also saw an increase of 3.2%, influenced by rising beef and rice costs. Service prices went up by 2.6%, primarily due to higher insurance premiums. Core inflation, which excludes volatile food and energy prices, advanced by 2.5% year-on-year.
First Vice Finance Minister Lee Hyoung-il emphasized the government's commitment to keeping inflation around 3% in the latter half of the year. Measures such as discount events at retail stores and importing additional eggs are being implemented to help stabilize consumer prices.