Key facts
- South Korea's consumer prices increased 3.1% year-on-year in August.
- The August inflation rate was lower than the 3.2% forecast.
- Oil prices rose 14.2% year-on-year, contributing significantly to the inflation.
- Mobile phone service charges increased by 26.7% due to a low base effect.
- Core inflation, excluding food and energy, rose 3.4% year-on-year.
South Korea's consumer prices rose 3.1% in August compared to the previous year, a figure that fell short of the 3.2% forecast. This increase was primarily driven by elevated oil prices, with diesel and gasoline prices seeing significant year-on-year jumps. Additionally, mobile service subscription charges contributed to the rise, influenced by a low base effect from substantial discounts offered in the prior year following a data breach. The August inflation rate marked an acceleration from July's 2.8% year-on-year increase. Oil prices, a key import for the energy-reliant nation, climbed 14.2% year-on-year, contributing 0.54 percentage points to the overall consumer price growth. Diesel prices saw a 19.6% increase, and gasoline prices advanced by 11.5%. Core inflation, which excludes volatile food and energy prices, also showed an upward trend, rising 3.4% year-on-year. This was the highest level recorded since May 2023. Prices for industrial products increased by 3.7% year-on-year, while prices for agricultural, livestock, and fishery products decreased by 2.6%. The service sector experienced a 3.7% price increase, with notable rises in insurance premiums and overseas package tour prices.