Inflation rate of 0.5% this year… 0%’low price’ for the first two consecutive years

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-This year’s consumer inflation rate was only 0.5%, recording a 0% inflation rate for the first two consecutive years following last year. This year’s consumer inflation rate is 0.1% (p) higher than last year’s 0.4%, which was a record low.

Although the price of agricultural and livestock products rose due to the spread of Corona 19, such as an increase in demand for food materials in the home, industrial products and other products showed weakness due to the fall of international oil prices.

According to the’December 2012 and Annual Consumer Price Trends’ released by the National Statistical Office on the 31st, the consumer price index this year was 105.42, up 0.5% from the previous year.

This year’s inflation rate has been around 0% for the second year in a row, following last year (0.4%), the lowest level since 1965, when related statistics began to be prepared. The annual inflation rate remained at the 0% range, four times this year, following 1999 (0.8%), 2015 (0.7%) and last year. As such, it can be interpreted that the drop in petroleum prices and policy support, such as free education, have affected the decline in the annual consumer price increase to the lowest level ever.

Agricultural and livestock products rose 6.8% due to the increase in demand for food ingredients in the home following the corona 19 effect. On the other hand, petroleum products, which reflected the impact of weak international oil prices, fell 7.5%.

The inflation rate of industrial products also increased due to an increase in shipping prices for some processed foods (1.4%) and pharmaceuticals (1.6%), while the decline in international oil prices affected by 0.2%.

The annual core inflation rate reached its lowest level in 21 years.

This year’s food and energy exclusion index rose 0.7% year-on-year, the same as last year, but continued the highest increase since 1999 (-0.2%) for two consecutive years. Excluding agricultural products and petroleum products rose by 0.4%, and except for 1999 (0.3%), the rate of increase was the lowest since statistics were prepared.


(Sejong = News 1)