South Korea's consumer prices increased at less than the central bank's 2 percent target for the third consecutive month in November, data showed Tuesday.
Consumer prices, a key gauge of inflation, rose 1.5 percent from a year earlier last month, following a 1.3 percent on-year increase in October, according to the data from Statistics Korea. September saw a 1.6 percent on-year increase.
South Korea's consumer inflation has stayed below 3 percent since April and fell below the inflation target rate of 2 percent for the first time in September.
Prices of the overall agricultural, livestock and fisheries products went up 1 percent on-year last month, the agency said.
Vegetables, in particular, saw a significant rise of 10.4 percent compared with the previous year, partly due to unfavorable weather conditions and reduced shipments of key items, such as radishes and cabbages, essential ingredients for kimchi. Meanwhile, fruit prices dropped 8.6 percent on-year due to stable supply levels.
In contrast, petroleum product prices declined 5.3 percent from a year earlier in November, driven by easing global oil prices.
"The drop is due to the decline in international oil prices compared with the same month last year," said Baek Ji-seon, an agency official.
Dubai crude, South Korea's benchmark, came to US$72.6 per barrel on average last month, reflecting a 13.1 percent decrease from the same month last year, according to separate data.
On an on-month basis, prices rose 2.4 percent in November, largely due to the reduction in fuel-tax cuts, the agency said.
Core inflation, which excludes volatile food and energy prices, added 1.9 percent, compared with a 1.8 percent on-year increase in October, the data showed.
Prices of daily necessities -- 144 items closely related to people's everyday lives, such as food, clothing and housing -- climbed 1.6 percent in November, accelerating from a 1.2 percent on-year increase in the previous month, the data showed.
"If no significant shocks occur, inflation is expected to remain within the 2 percent range," First Vice Finance Minister Kim Beom-seok said during a meeting with economic officials.
He pledged continued government efforts to stabilize prices and support households burdened by the impact of prolonged high inflation.
South Korea has faced significant inflationary pressure in recent years following the COVID-19 pandemic. Consumer prices jumped 5.1 percent on-year in 2022, marking the highest growth in decades, followed by a slightly lower 3.6 percent increase in 2023.
The finance ministry has said it will alleviate the burden of high energy costs in the winter season by extending its tariff rate quota on energy imports into part of next year.
The tariff rate quota system allows a specified volume of imports to enter the country at reduced tariff rates for a defined period. The measure is considered crucial for South Korea, which relies heavily on imports for its energy needs. (Yonhap)
