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South Korea's consumer prices rose 2.6 percent in April from a year earlier — the fastest pace in 21 months — driven by soaring fuel costs, according to government data released Wednesday.

The data, from the Ministry of Data and Statistics, marked the largest on-year increase since July 2024, when inflation also rose 2.6 percent. The pace was led by a 21.9 percent surge in petroleum product prices — the steepest jump since July 2022.

Yonhap News, which reported the figures, noted the rise reflected near-record cost increases at the pump: diesel prices climbed 30.8 percent on the year and gasoline prices 21.1 percent, both marking the sharpest on-year increases since July 2022.

Coverage composition

All reports of the data came from a single wire service, Yonhap News, which framed the rise as a fuel-driven phenomenon with a neutral tone. The wire reported that global oil prices have risen sharply in recent months, with the Strait of Hormuz effectively closed since U.S.-Israeli strikes on Iran in late February, disrupting global oil supplies. South Korea, which relies heavily on energy imports, has faced the brunt of that disruption.

The same reports described the effects of the fuel price surge on the broader consumer basket. Prices of industrial products rose 3.8 percent, the fastest growth since February 2023, while service prices increased 2.4 percent from a year earlier, driven by higher insurance costs. International airfares, which had climbed 0.8 percent the previous month, accelerated to 15.9 percent in April as rising oil prices pushed up fuel surcharges.

Key claims

  • Consumer prices rose 2.6 percent in April from a year earlier.
  • Petroleum product prices jumped 21.9 percent, the sharpest increase since July 2022, and led the overall rise.
  • Diesel and gasoline prices rose 30.8 percent and 21.1 percent, respectively, on year.
  • Prices of industrial products rose 3.8 percent, the fastest since February 2023.
  • Service prices increased 2.4 percent on rising insurance costs.
  • Prices of agricultural, livestock and fishery products edged down 0.5 percent, marking a second consecutive monthly decline.
  • International airfares accelerated to 15.9 percent in April.
  • Core inflation, which strips out volatile food and energy items, rose 2.2 percent on the year.

Perspectives

Bank of Korea. Senior Deputy Gov. Yoo Sang-dai said inflation is projected to rise further in May, largely because of persistent high oil prices and a low base of comparison from last year's fall in agricultural, livestock and fishery product prices. Food prices, he noted, have recently remained stable, and the government's price stabilization measures are expected to mitigate upward pressure from the oil price shock. "Given the significant uncertainty surrounding the future inflation outlook, the Bank of Korea will closely monitor inflation with vigilance," Yoo said.

Ministry of Economy and Finance officials. The ministry said the price, in part, was offset by temporary caps on fuel products introduced in March, a measure designed to constrain price increases caused by the Middle East conflict. The system sets maximum prices for fuel products supplied by refiners every two weeks. "The measures had a moderating effect not only on fuel prices but also on overall consumer inflation," the ministry's Lee Doo-won, a ministry official, told the reporter. "However, fuel prices may see a slight increase in May." In a separate report, First Vice Finance Minister Lee Hyoung-il informed the Cabinet that price stabilization measures — including the fuel price cap and a temporary fuel tax cut — reduced overall inflation by 1.2 percentage points.

Future outlook

The Bank of Korea's senior deputy governor said May inflation is expected to rise further, responding via base effects and the impact of sustained high oil prices. The finance ministry, for its part, believes the price-stabilization measures — including the fuel cap and a fuel tax cut — will mitigate upward pressure on consumer prices across the economy in the coming months. Rising oil prices have already fueled an acceleration in international flight costs, with the ministry expecting further pressure in May.