South Korea’s consumer price inflation fell in July to the lowest in 10 months on the back of the continued trend of cheaper crude oil, a government report showed on Tuesday.

Inflation
Inflation
Consumer prices rose 0.7 percent in July from a year earlier, according to Statistics Korea. It marked the lowest in 10 months since September last year.

After peaking at 1.2 percent in February, the headline inflation kept falling to 1.0 percent in April and 0.8 percent in June.

Oil product prices tumbled 8.9 percent last month, dragging down the overall headline inflation by 0.38 percentage points.

Farm goods prices slumped 4.0 percent, pulling down the inflation by 0.15 percentage points, while prices for electricity, tap water and gas declined 3.9 percent and dragged down the overall inflation by 0.18 percentage points.

Services prices increased 1.9 percent in July from a year earlier, bolstering up the overall inflation by 1.05 percentage points last month.

Core consumer prices, which exclude volatile agricultural and oil products, gained 1.6 percent in July. The OECD-method core consumer prices excluding food and energy increased 1.7 percent last month, the lowest in 19 months.

Fresh food price index, which reflects prices of fruits, vegetables and fish, inched down 0.4 percent in July from a year ago. The fresh food price growth, which stayed above 9 percent from February to April, slipped to 3.5 percent in May and turned downward in June at a 1.7 percent decline.

The statistical agency said cheaper crude oil led to a fall in city gas prices and regional heating costs, expecting that if global oil prices stay low at this level, consumer prices could rise in the fourth quarter thanks to a low base effect of the same quarter of last year.

Industrial goods prices shed 0.5 percent in July on a year basis as oil product prices slid at a faster clip.

Costs for electricity, tap water and gas declined 3.9 percent as costs for regional heating and city gas plunged 22.2 percent and 15.8 percent each on the back of lower crude oil prices.

Prices for agricultural, livestock and fishery products inched up 0.2 percent in July from a year ago.

Prices for lettuce and young radish surged 47.6 percent and 39.1 percent each last month as hot weather and heavy rainfall reduced crops. Those for crab, garlic, cucumber, beef and zucchini advanced 44.3 percent, 32.1 percent, 28.7 percent, 17.3 percent and 14.6 percent respectively.

Prices for radish and spring onion, declined 23.5 percent and 22.4 percent each last month, with those for onion and sweet potato sliding 19.8 percent and 18.4 percent respectively.

Prices for Jeonse, South Korea’s unique home lease contract, advanced 3.6 percent in July. Jeonse is a contract between two households where a landlord grants the resident right for two years to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord. Enditem

Source: Xinhua/News Ghana

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