Consumer prices increase over 3% for second month in March

Inflation worry: Shoppers are seen in Seoul, South Korea. Prices of industrial products added 2.2% in March in the country, driven by rising prices of clothing. — Bloomberg

SEOUL: South Korea’s inflation stayed over 3% for the second consecutive month in March on record prices of fruits and rising global oil prices, data show.

Consumer prices, a key gauge of inflation, rose 3.1% on-year last month, following a 3.2% increase the previous month, according to the data from Statistics Korea.

In January, inflation fell below 3% for the first time since July 2023, but high prices of fruits, farm produce and energy have caused inflationary pressure to flare up again.

Prices of agricultural, livestock and fishery products rose 11.7% on-year last month, the highest rise since April 2021, when the prices rose 13.2%.

Agricultural products, in particular, spiked 20.5%, which accounted for a 0.79 percentage point increase in the overall inflation.

Of major items, the price of apples surged 88.2%, a record surge since the agency began compiling relevant data in 1980.

Prices of pears spiked 87.8%, also an all-time high, and those of tangerines soared 68.4%.

Prices of 18 major kinds of fruits combined turned up 40.3% last month.

“Poor harvests amid unfavourable weather conditions and a base effect have jacked up fruit prices,” an agency official said, noting that the price level came despite the government’s recent discount programmes and aggressive campaigns.

Prices of industrial products added 2.2%, driven by rising prices of clothing.

Prices of petroleum products also rose 1.2% on-year amid instability in global oil prices, and it marked the first time since January 2023 that petroleum products reported an on-year price hike.

Dubai crude, South Korea’s benchmark, rose to US$84.18 per barrel on average in March, compared with US$77.33 in December, US$78.85 in January and US$80.88 in February, according to government data.

Service prices increased 2.3% on-year in March.

In detail, insurance service fees advanced 17.9% and housing maintenance fees rose 4.8% on-year. Prices of dining out went up 3.4%. — The Korea Herald/ANN