Seoul: South Korea's consumer prices rose 2 percent from a year earlier in February, unchanged from the previous month and precisely meeting the inflation target, government data showed Friday. This marks the smallest on-year increase since August, when the figure stood at 1.7 percent.
According to Yonhap News Agency, the February reading also marks the second consecutive month that inflation met the Bank of Korea's 2 percent target, and the sixth straight month the growth pace remained at 2 percent or above. The stability in inflation rates comes amidst various economic factors influencing the country's market dynamics.
In February, petroleum prices decreased 2.4 percent on-year, marking the first drop in six months. However, this figure does not reflect the recent hike in oil prices sparked by the Iran crisis. Meanwhile, prices of agricultural, livestock, and fishery products increased by 1.7 percent, though at a slower pace than the previous month, primarily due to a significant decline in vegetable prices. Conversely, prices of livestock products surged 6 percent on-year, recording the highest growth in six months.
Service prices experienced a 2.6 percent increase, marking the sharpest on-year gain since January 2024. This was attributed to a rise in the prices of private services. Additionally, prices of industrial goods rose 1.2 percent, whereas electricity, gas, and water rates saw a marginal increase of 0.2 percent.
Core inflation, excluding volatile food and energy prices, increased by 2.3 percent on-year last month, as reported by the Ministry of Data and Statistics. The steady inflation rate underscores the ongoing economic adjustments within the country.