(ATTN: RECASTS headline, lead; UPDATES with details throughout)
By Kang Yoon-seung
SEJONG, Oct. 5 (Yonhap) — South Korea’s consumer prices surged to the highest level in five months in September, with the increase attributed to rising oil costs and prices of certain agricultural goods, data showed Thursday.
The Statistics Korea data revealed that the on-year consumer prices rose 3.7 percent last month.
August’s consumer prices had increased 3.4 percent on-year, up from the 2.3 percent growth recorded in July. This marked the highest on-year jump since the 3.7 percent increase in April.
Core inflation, which excludes volatile food and energy prices, rose 3.3 percent on-year in September, staying the same as the previous month.
Utility services prices saw a sharp hike of 19.1 percent due to global energy prices, with South Korea relying heavily on imports for its energy needs. Prices of agricultural and fishery products also went up 3.7 percent, with apples and rice prices jumping 54.8 percent and 14.5 percent, respectively.
On the other hand, napa cabbages and homegrown beef prices dropped 35.2 percent and 5.4 percent, respectively.
Industrial products prices increased 3.4 percent, primarily due to higher clothing costs. Gasoline prices went up 1.9 percent, while diesel costs fell 10.2 percent.
The service sector saw a 2.9 percent on-year rise in September, with insurance and house management costs playing a role. Prices of daily necessities — 144 items closely related to people’s everyday lives, such as food, clothing and housing — climbed 4.4 percent, up from 3.9 percent in the prior month.
“The consumer prices’ direction will likely depend on global oil prices,” an official from the agency said.
South Korea’s central bank held its key interest rate steady at 3.5 percent in August for the fifth straight time as it weighs a slowdown in growth amid moderating inflation.
A customer shops for groceries at a supermarket in Seoul on Oct. 2, 2023. (Yonhap)
colin@yna.co.kr
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