South Korea reports 2.2 percent rise in annual inflation last month, surpassing estimates

(MENAFN) South Korea’s Consumer Price Index (CPI) recorded an annual increase of 2.2 percent in July, which was slightly below the market expectation of a 2.4 percent rise. According to Statistics Korea, this uptick in inflation was driven by notable increases in various categories. Specifically, prices for food and non-alcoholic beverages rose by 3.6 percent, while transport costs surged by 5.2 percent. Additionally, the costs associated with housing, water, electricity, gas, and other fuels increased by 1.2 percent compared to the same period last year.

On a monthly basis, the CPI in South Korea rose by 0.3 percent in July, meeting market expectations. This monthly change reflected varying trends across different sectors. Food and non-alcoholic beverage prices saw a monthly increase of 0.7 percent, and transport prices grew by 1.7 percent. However, prices for housing, water, electricity, gas, and other fuels experienced a decrease of 1.2 percent from the previous month.

The report highlights that while there were overall increases in annual prices, certain categories saw more pronounced changes. The substantial rise in transport costs suggests that transportation remains a significant factor influencing inflation. Conversely, the drop in housing-related expenses indicates a decrease in the cost of essential utilities and housing services on a monthly basis.

Overall, these figures provide a nuanced view of the inflationary pressures in South Korea. The annual CPI rise suggests persistent inflationary trends, particularly in essential areas such as food and transportation, while the monthly CPI increase indicates a more stable inflationary environment with mixed movements across different expenditure categories.

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