Consumer prices rise over 3 pct for 2nd month in March
SEOUL, April 2 (Yonhap) -- South Korea's inflation stayed over 3 percent for the second consecutive month in March on record prices of fruits and rising global oil prices, data showed Tuesday.
Consumer prices, a key gauge of inflation, rose 3.1 percent on-year last month, following a 3.2 percent increase the previous month, according to the data from Statistics Korea.
In January, inflation fell below 3 percent for the first time since July 2023, but high prices of fruits, farm produce and energy have caused inflationary pressure to flare up again.
Prices of agricultural, livestock and fishery products rose 11.7 percent on-year last month, the highest rise since April 2021 when the prices rose 13.2 percent.
Agricultural products, in particular, spiked 20.5 percent, which accounted for a 0.79 percentage point increase in the overall inflation.
Of major items, prices of apples surged 88.2 percent, a record surge since the agency began compiling relevant data in 1980.
Prices of pears spiked 87.8 percent, also an all-time high, and those of tangerines soared 68.4 percent. Prices of 18 major kinds of fruits combined turned up 40.3 percent last month.
"Poor harvests amid unfavorable weather conditions and a base effect have jacked up fruit prices," an agency official said, noting that the price level came despite the government's recent discount programs and aggressive campaigns.
Prices of industrial products added 2.2 percent, driven by rising prices of clothing.
Prices of petroleum products also rose 1.2 percent on-year amid instability in global oil prices, and it marked the first time since January 2023 that petroleum products reported an on-year price hike.
Dubai crude, South Korea's benchmark, rose to US$84.18 per barrel on average in March, compared with $77.33 in December, $78.85 in January and $80.88 in February, according to government data.
Service prices increased 2.3 percent on-year in March.
In detail, insurance service fees advanced 17.9 percent and housing maintenance fees rose 4.8 percent on-year. Prices of dining out went up 3.4 percent.
Core inflation, which excludes volatile food and energy prices, went up 2.4 percent on-year in March.
Prices of daily necessities -- 144 items closely related to people's everyday lives, such as food, clothing and housing -- climbed 3.8 percent last month, the data showed.
"Geopolitical factors that affect oil prices and weather conditions are expected to be crucial factors regarding the country's inflation level down the road," the agency official said.
The government has said consumer prices are forecast to ease at a slower pace than earlier expected before reaching the target rate of 2 percent by around the end of 2024.
The finance ministry expected this year's prices to rise 2.6 percent.
graceoh@yna.co.kr
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