South Korea inflation rises to 3.1% in August

consumer price index inflation rate telecommunications fees core inflation South Korea economy

South Korea's consumer price inflation rose to 3.1% in August, up from 2.8% in July, marking a return to the 3% range. The increase was driven significantly by a 26.7% surge in mobile phone service fees, a result of a low base effect following large-scale discounts offered by SK Telecom last year after a data breach.

Public service prices saw a sharp increase of 6.5%, the highest rate since August 2001. Core inflation, which excludes volatile food and energy prices, reached 3.4%, the highest level in three years and three months. While oil prices remained elevated, contributing to the rise, the government noted that an oil price ceiling system helped mitigate the overall inflation rate by an estimated 0.5 percentage points.

In response to rising costs ahead of the Chuseok holiday, the government announced plans to invest 103 billion won to provide 40% to 50% discounts on agricultural and livestock products. Despite the rise in headline inflation, the Bank of Korea expects inflation to ease in September as the telecommunications base effect fades, though underlying price pressures in core items are expected to persist.

Entities

Bank of Korea · CJ CheilJedang · Dongwon F&B · Ministry of Data and Statistics · National Data Agency · New Balance · Ottogi · Paldo · SK Telecom · South Korea

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] The oil price ceiling system is estimated to have reduced the consumer price inflation rate by 0.5 percentage points. www.mbn.co.kr
[● 6 SOURCES] Mobile phone fees increased by 26.7% year-on-year in August. www.mbn.co.kr · www.seoul.co.kr · www.bjynews.com · www.imaeil.com · biz.heraldcorp.com · +1 more
[○ 1 SOURCE] New Balance is increasing the price of its '509' shoe model by 14% due to exchange rates and raw material costs.
[● 4 SOURCES] Core inflation reached 3.4%, the highest level in 3 years and 3 months. www.seoul.co.kr · biz.heraldcorp.com · www.socialnews.xyz · www.koreaherald.com
[● 10 SOURCES] South Korea's consumer price inflation rose to 3.1% in August, up from 2.8% in July. www.mbn.co.kr · www.seoul.co.kr · www.bjynews.com · www.imaeil.com · biz.heraldcorp.com · +4 more
[● 5 SOURCES] Excluding the base effect of last year's mobile phone fee discounts, the August inflation rate is estimated at 2.5%. www.mbn.co.kr · www.imaeil.com · biz.heraldcorp.com · www.newstomato.com · www.socialnews.xyz
[● 2 SOURCES] Public service prices increased by 6.5%, the highest rate since August 2001. www.seoul.co.kr · biz.heraldcorp.com
[● 2 SOURCES] The government will invest 103 billion won to provide discounts of 40% to 50% on agricultural and livestock products ahead of Chuseok. www.mbn.co.kr
[○ 1 SOURCE] Oil prices contributed 0.54 percentage point to the year-on-year consumer price growth in August. www.socialnews.xyz