World Economy

S. Korea Inflation at 10-Month Low

S. Korea Inflation at 10-Month LowS. Korea Inflation at 10-Month Low

South Korea’s consumer price inflation fell in July to the lowest in 10 months at 0.7% on the back of the continued effect of low crude oil prices, a government report showed on Tuesday, Xinhua reported. Consumer prices rose 0.7% in July from a year earlier, according to Statistics Korea. After peaking at 1.2% in February, the headline inflation kept falling to 1% in April and 0.8% in June. Oil product prices tumbled 8.9% last month, dragging down the overall headline inflation by 0.38 percentage points. Farm goods prices slumped 4%, pulling down the inflation by 0.15 percentage points, while prices for electricity, tap water and gas declined 3.9% and dragged down the overall inflation by 0.18 percentage points. Services prices increased 1.9% 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% in July. The OECD-method core consumer prices excluding food and energy increased 1.7% last month, the lowest in 19 months.