Consumer prices in Korea rose 2.2% in March due to higher oil prices
SEOUL, April 2, 2017 (WAM) – Consumer prices in South Korea rose by 2.2% year-on-year in March due to a rise in global oil prices as a result of prolonged tensions in the Middle East, according to government data issued on Thursday.
The Ministry of Data and Statistics said the figure, which exceeds the government’s inflation target of 2%, represents the largest year-on-year increase since December when inflation rose by 2.3%.
The recent rise resulted from a significant increase in petroleum product prices, which jumped by 9.9% year-on-year last month, marking the largest increase since October 2022 when prices jumped by 10.3% year-on-year amid the Russian-Ukrainian war.
In particular, diesel and gasoline prices saw a sharp increase of 17% and 8% year-on-year, respectively.
Global oil prices have risen sharply with the Strait of Hormuz effectively closed since the US-Israeli strikes on Iran in late February, disrupting global oil supplies, as South Korea relies heavily on imports to secure energy.
The prices of agricultural, livestock and fishery products decreased by 0.6% on an annual basis, mainly due to a sharp decline in the prices of agricultural products by 5.6% on an annual basis, while the prices of animal and fishery products increased by 6.2% and 4.4%, respectively.
Service prices increased by 2.4%, driven by higher insurance costs.
Core inflation, which excludes volatile food and energy prices, rose 2.2% year-on-year last month.
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