S. Korea’s January Consumer Prices Growth Hits Five-Month Low
The consumer price index (CPI) advanced 2.0 percent year-over-year in January, representing the weakest expansion since September of the previous year, data from the Ministry of Data and Statistics confirmed.
Headline inflation has persistently exceeded the central bank's medium-term target of 2 percent throughout recent months, registering 2.1 percent in September, 2.4 percent in October, 2.4 percent in November, and 2.3 percent in December of last year.
January's cooling inflation stemmed primarily from diminished price acceleration in farm-related goods and oil-based products, providing relief to consumers facing elevated living costs.
Industrial product prices, encompassing oil derivatives and processed food items, rose 1.7 percent in January compared to the corresponding month last year—notably lower than December's 2.2 percent growth rate.
Oil product pricing remained flat in January on an annual basis following a sharp 6.1 percent surge the previous month. Gasoline prices declined 0.5 percent, while diesel costs climbed 2.2 percent.
Processed food prices swelled 2.8 percent, contributing 0.24 percentage points to overall inflation pressures.
Agricultural, livestock and fishery product prices increased 2.6 percent in January year-over-year, down from the previous month's 4.1 percent expansion, reflecting seasonal market adjustments.
Agricultural product prices edged up merely 0.9 percent, contrasting with livestock and fishery products, which surged 4.1 percent and 5.9 percent respectively.
Rice, apple and mackerel prices jumped in double-digit percentages, while pork, beef and imported beef costs rose in single figures. Meanwhile, white radish, carrot, pear and napa cabbage experienced double-digit price declines last month.
Electricity, natural gas and tap water prices increased 0.2 percent in January on a yearly basis, showing minimal impact on household budgets.
City gas charges, heating costs and waterworks fees picked up in single digits, though electricity bills decreased 0.4 percent, offering modest household relief.
Service prices gained 2.3 percent last month, lifting headline inflation by 1.24 percentage points, while public service prices grew 1.6 percent.
Private service prices, including eating-out costs, rose 2.8 percent last month—marginally lower than the previous month's 2.9 percent growth.
Dining-out expenses expanded 2.9 percent, and private service prices excluding dining-out costs advanced 2.8 percent, reflecting persistent demand in the service sector.
Housing rent, including Jeonse and monthly rent, increased 0.9 percent in January from a year earlier.
Jeonse represents South Korea's distinctive housing contract where landlords grant two-year residential rights to tenants who provide substantial deposits rather than monthly payments.
The livelihood items index, measuring daily necessity prices, gained 2.2 percent in January year-over-year, while the fresh food index, tracking fish, shellfish, fruit and vegetable costs, slipped 0.2 percent.
Demand-side inflationary pressures persisted beneath the surface. Core consumer price index, excluding volatile agricultural and oil products, appreciated 2.3 percent last month.
The OECD-method core price measure, excluding volatile energy and food costs, picked up 2.0 percent in the cited month, suggesting underlying inflation remains stubbornly elevated despite headline moderation.
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