Slowdown in the growth of agricultural, livestock and marine products and in oil prices… Core inflation 4.8% ↑
Consumer price inflation recorded 5% in November, remaining in the 5% range for 4 consecutive months.
The increase in the prices of agricultural, livestock and marine products has slowed and the rate of increase has decreased by the largest margin in 7 months since last April.
According to the “November Consumer Price Trends” announced by the National Bureau of Statistics on the 2nd, the consumer price index last month was 109.10 (2020=100), down 0.1% from last month and up 5.0% from a year ago.
In the same month, it is the largest increase in 24 years since 1998. The increase was 0.7% lower than the previous month. This is the lowest rate of increase since April (4.8%).
Last month, consumer prices continued to rise sharply for industrial products such as processed foods, personal services such as dining out and electricity, gas and water prices, but the rate of increase prices of agricultural and livestock products such as vegetables and industrial products such as oil have slowed down.
The prices of personal services (+6.2%), of industrial products (+5.9%), of electricity/gas/water (+23.1%) and of agricultural and zootechnical products (+ 0.3%).
As for agricultural and livestock products, the price of aquatic and livestock products increased, but the price of agricultural products (-2.0%) decreased, increasing overall by 0.3%, slowing down the rate of increase. Livestock products increased by 1.1%, led by pork, chicken and eggs. Seafood products showed a 6.8% increase, centered on mackerel, squid and cod.
As for petroleum products, the rate of increase slowed to 5.6% as international oil prices continued to stabilize amid a drop in demand due to China’s tightened quarantine measures.
Industrial products rose 5.9% as prices of processed foods and petroleum products rose. Electricity, gas and water prices increased by 23.1% as the costs of town gas, electricity and district heating increased.
Services grew overall by 4.1% as personal services increased by 6.1%, rents by 1.6% and utilities by 0.8% due to a slower rate of increase in prices of services excluding meals outside the home due to the low season of domestic leisure demand.
Core inflation (excluding agricultural products and oil), which shows the underlying trend in prices, was up 4.8% year on year, and the index excluding food and energy was up 4.3%. The cost of living index increased by 5.5% as the pace of price increases slowed down, focused on food prices, due to the impact of falling prices of agricultural, livestock and fisheries products. Food and non-food items increased by 6.3% and 5.0%, respectively.
The fresh food index rose by just 0.8%, with the rate of increase significantly reduced due to falling vegetable prices following improved supply and demand for kimchi vegetables such as cabbage and radish and increase in shipments of seasonal fruit. Fresh fish increased by 6.8%, fresh fruit increased by 0.8%, but fresh vegetables decreased by 2.8%. The home ownership cost inclusion rate increased by 4.4%.
The Ministry of Strategy and Finance said, “Inflation continued to slow last month due to improved supply and demand conditions for agricultural products, mainly vegetables such as cabbage and radishes.”
“However, internal and external risks such as product price adjustments early in the year and logistics disruptions due to cargo union refusal to bulk transport remain potential, so we expect to respond with all-out efforts, such as discovering and implement additional political tasks,” he added.
Reporter Kim Jin-hee of Helloty |
