South Korea’s consumer price index (CPI) increased by 2% year-over-year in February, according to government data released Friday. This figure matches the inflation target and remains consistent with the previous month’s reading.
The 2% rise represents the lowest year-on-year increase since August when inflation reached 1.7%, according to figures released by the Ministry of Statistics.
This marks the second consecutive month that inflation has hit the Bank of Korea’s (BOK) 2% target, and the sixth consecutive month with a growth rate at or above 2%.
In February, petroleum prices saw a year-on-year decrease of 2.4%, the first decline in six months. It’s important to note that this figure does not reflect the recent increase in oil prices resulting from the situation involving Iran.
The cost of agricultural, livestock, and fishery products experienced a 1.7% increase, a slower pace than the previous month, largely due to a significant drop in vegetable prices. However, livestock product prices rose sharply, with a 6% year-on-year increase, representing the largest increase in six months.
Service prices rose by 2.6%, representing the sharpest year-on-year gain since January 2024, driven by increases in the prices of private services.
The prices of industrial goods rose by 1.2%, while electricity, gas, and water rates saw a smaller increase of 0.2%.
