Last month’s consumer prices rose by 3.2%, the largest increase in two and a half years, driven by a significant surge in petroleum prices following the aftermath of the Middle East war. The cost of living index, which reflects the prices of frequently purchased items and is closely felt by ordinary citizens, also saw its largest increase in two years and two months. According to the ‘June Consumer Price Trends’ released by the Ministry of Data and Statistics on the 2nd, last month’s consumer prices rose by 3.2% compared to the same month the previous year. This is the largest increase since December 2023, 3.2%. The government explained that the petroleum price cap system, implemented since March, suppressed the rate of price increases, keeping the inflation rate in the low 3% range. Lee Hyoung-il, First Vice Minister of Finance and Economy, stated, “It is estimated that the inflation rate would have reached 3.6% if the petroleum price cap system had not been in place.” Petroleum prices surged by 24.7%, driving up overall consumer prices. The increase in petroleum prices was the largest since July 2022, 35.2%, during the early stages of the Ukraine war. Diesel prices rose by 33.7%, while gasoline and kerosene each increased by 23.1%. The cost of living index, which reflects the prices of frequently purchased items and indicates perceived inflation, rose by 3.4%. This is the largest increase since April 2024, 3.6%. The surge was driven by significant increases in food prices, including green onions (37.1%), rice (11.7%), and eggs (10.3%), alongside petroleum. Due to rising prices of rice and eggs, grains and livestock products increased by 8.2% and 6.2%, respectively. Seafood prices also spiked, led by increases in hairtail (10%), yellow corvina (12%), and mackerel (4.8%), causing the related price index to rise by 3.7% compared to the same month the previous year. The vice minister stated, “The June consumer price increase was slightly expanded due to rising prices of agricultural and livestock products influenced by livestock epidemics and the continued upward trend in petroleum prices.” The government decided to keep major public utility rates, such as electricity and gas fees, frozen in the second half of the year and extend the petroleum price cap system to manage the inflation rate within 3%. The Bank of Korea held a price situation review meeting on the 2nd and announced, “The July consumer price inflation rate is expected to be slightly lower than June’s due to falling international oil prices and the government’s price stabilization measures.”   (ICE SEOUL)

Fonte notizia: The CHOSUN DAILY