[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [QUIET] · [BUSINESS]

3 clusters · 19 sources · 3 days · First seen · Last updated

South Korean inflation trends and forecasts

Overview

South Korea’s annual consumer inflation slowed to 2.9% in September, down from 3.1% in August. While government supply increases and holiday discounts helped lower prices in some agricultural, livestock, and fisheries sectors, other areas faced significant upward pressure.

Petroleum products saw a sharp rise, with diesel surging by 20%, though officials estimated that a government petroleum price cap policy prevented inflation from reaching 3.5%. Processed foods increased by 2.1%, and IT devices experienced notable hikes, including computers at 27.4% and mobile phones at 8.3%.

Data from Statistics Korea indicates that rising costs in fresh agricultural products and energy commodities were primary drivers of inflation. Severe summer weather, characterized by extreme heat waves and torrential rainfall, disrupted harvests and led to price escalations for fresh vegetables, fruits, and livestock. These supply constraints increased wholesale and retail distribution charges. Additionally, fluctuations in global crude oil prices and higher natural gas costs impacted domestic fuel prices and utility benchmarks, subsequently affecting transportation expenses for commuters and commercial logistics providers.

By early October, the Bank of Korea noted that while the headline rate decreased, the underlying inflationary trend had expanded due to the expiration of temporary base effects. Deputy Governor Lee Ji-ho highlighted that core inflation remains pressured by rising costs in personal services, such as airfares and travel, as well as durable goods driven by semiconductor prices. The Bank forecasts inflation will remain near 3% in October, citing ongoing uncertainties from Middle East conflicts and potential cost shocks.

Entities

South Korea · Bank of Korea · Korea Expressway Corporation · Ministry of Economy and Finance · Ministry of Data and Statistics

Timeline

  1. [BUSINESS] 7 sources
    South Korea consumer prices rise 2.9 percent in September

    South Korea's consumer prices rose 2.9 percent in September, with core inflation at 2.8 percent. Regional inflation in Gyeonggi hit 3.0 percent, driven by high costs for electronics and travel services.

  2. [BUSINESS] 2 sources
    Bank of Korea forecasts October inflation near 3%

    The Bank of Korea expects October inflation to remain around 3%, noting that rising costs in services and electronics, alongside Middle East uncertainties, are driving price pressures.

  3. [BUSINESS] 12 sources
    South Korea inflation slows to 2.9% in September

    South Korea’s September inflation eased to 2.9% year-on-year, down from 3.1% in August, as falling agricultural costs offset rising petroleum and processed food prices.

Sources

angolalive.com · biz.heraldcorp.com · china.timesofnews.com · datafocus.co.kr · habarileo.com · habarizatanzania.com · hani.co.kr · hidomin.com · imaeil.com · incheonilbo.com · kyeonggi.com · m.imaeil.com · m.sportalkorea.com · monthlymaritimekorea.com · newstomato.com · saudiindependent.com · seoul.co.kr · toray.co.jp · zanzibarleo.com

This summary has been updated 1 time: see revision history