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South Korea's consumer prices rose 3.2 percent in June from a year earlier, marking the sharpest increase in 30 months as the lingering impact of the Middle East war on supply chains and oil prices continued to push up costs, data showed Thursday. The increase, reported by the Ministry of Data and Statistics, matched the level seen in December 2023 and came after two consecutive months of inflation above 3 percent.

Coverage comparison

Yonhap News Agency, the country's leading wire service, reported the figures in multiple dispatches, with details expanding across updates. The central figures remained consistent across all reports: consumer prices climbed 3.2 percent year-on-year in June, with industrial product prices rising 4.4 percent, driven largely by fuel costs. Fuel prices surged 24.7 percent, contributing 0.93 percentage point to the overall inflation figure — the largest fuel-price jump since July 2022, when prices rose 35.2 percent. Gasoline prices rose 23.1 percent and diesel prices jumped 33.7 percent, reflecting South Korea's heavy reliance on imports to meet its energy needs.

Key claims

  • Consumer prices rose 3.2 percent in June compared to a year earlier, a pace last seen in December 2023, according to data from the Ministry of Data and Statistics.
  • Industrial product prices increased 4.4 percent, driven mainly by higher fuel prices.
  • Fuel prices advanced 24.7 percent, contributing 0.93 percentage point to the overall consumer price increase, the sharpest gain since July 2022.
  • Gasoline and diesel prices rose 23.1 percent and 33.7 percent, respectively.
  • Agricultural and fishery product prices went up 3.2 percent, led by higher prices for domestic beef (up 7.5 percent) and rice (up 11.7 percent), while green onions, a staple in Korean cuisine, soared 37.1 percent, according to the ministry.
  • Service prices increased 2.6 percent, with public sector services up 1.6 percent and private sector services up 3.4 percent. Excluding dining-out, private sector services rose 3.9 percent.
  • International flight ticket prices jumped 28.2 percent.
  • Core inflation, excluding volatile food and energy prices, advanced 2.5 percent year-on-year.

Government and central bank responses

The government has introduced measures to tackle inflation. A fuel price cap system was introduced in March. Recently, authorities announced plans to hold discount events at local retail stores in July and August and to import additional eggs to help tame prices.

During a meeting with related ministries, First Vice Finance Minister Lee Hyoung-il stressed the need to keep inflation around 3 percent in the second half of the year. "Related ministries will bolster on-site inspections so that all measures will contribute to the stabilization of consumer prices," he said.

The central bank expects consumer price growth to ease in July from the June level, according to the reports. The weak Korean won has not yet affected consumer prices, but officials are monitoring the situation.

Lee Doo-won, director-general for economic statistics at the Ministry of Data and Statistics, explained the green onion price surge, saying the cultivation area decreased and growth was hindered by the heat wave.

Perspectives

No other named viewpoints beyond the government and central bank were present in the material. The article does not include a perspectives section as no distinct alternative perspectives were reported.