SEOUL, June 4 (Xinhua) — South Korea’s consumer price inflation stayed below 3 percent for the second consecutive month due to a slower price growth in farm goods, statistical office data showed Tuesday.
The consumer price index (CPI) rose 2.7 percent in May from a year earlier after gaining 2.9 percent in the previous month, according to Statistics Korea.
The headline inflation continued to top the Bank of Korea (BOK)’s mid-term inflation target of 2 percent. The BOK had left its benchmark interest rate unchanged at 3.50 percent since January last year.
Price for agricultural, livestock and fishery products climbed 8.7 percent in May on a yearly basis, lower than a surge of 10.6 percent in the prior month.
Agricultural products price soared 19.0 percent last month, lifting the overall inflation by 0.69 percentage points.
Apple price skyrocketed 80.4 percent, with pear price more than doubling in the month. Prices for tomato and napa cabbage advanced in double figures.
Livestock products price declined 2.6 percent, but fishery products price inched up 0.1 percent.
Oil products price jumped 3.1 percent in May from a year earlier after rising 1.3 percent in the previous month.
Price for industrial products, including oil products, swelled 2.1 percent last month, raising the headline inflation by 0.69 percentage points.
The processed food price picked up 2.0 percent in May after going up 1.6 percent in the prior month.
Price for electricity, natural gas and tap water mounted 2.7 percent in the month, pulling up the overall inflation by 0.11 percentage points.
Electricity bills increased 1.6 percent, with city gas charges and heating costs expanding 3.0 percent and 12.1 percent each.
Private service price, including eating-out cost, spiked 2.8 percent last month, while public service price added 2.2 percent.
The eating-out expense gained 2.8 percent, drawing up inflation by 0.40 percentage points.
Housing rent, including Jeonse and monthly rent, edged up 0.1 percent in May from a year earlier.
Jeonse is South Korea’s unique contract between two households where a landlord grants a two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.
The livelihood items index, which gauges the price for daily necessities, was up 3.1 percent in May after expanding 3.5 percent in the previous month.
The fresh food index, which measures the price of fish, shellfish, fruit and vegetables, surged 17.3 percent last month, keeping a double-digit growth for the eighth straight month.
Demand-side inflationary pressure remained relatively low. The core consumer price index, which excludes volatile agricultural and oil products, climbed 2.0 percent last month.
The OECD-method core price, excluding volatile energy and food costs, increased 2.2 percent.
