S. Korea's consumer prices rise 3.7 pct in Jan.

(ATTN: UPDATES with more details, comments from para 2)
By Lee Joon-seung
SEOUL, Feb. 2 (Yonhap) -- South Korea's consumer prices grew at a slower pace in
January than in the previous month as falling crude oil prices cut import costs,
a government report showed Monday.

The consumer price index rose 3.7 percent last month from a year earlier, slowing
down from a 4.1 percent on-year advance the previous month and marking a 0.1
percent decline for the month, the National Statistical Office (NSO) said.
The decline marks the first time in 10 months that the index fell under the 4
percent mark and the sixth straight month that consumer prices have declined
annually after reaching 5.9 percent in July.
"The largest contributing factor to the steady decline is lower fuel prices,"
said Song Seong-heon, head of the NSO's price statistics division.
The prices of the benchmark Dubai crude, which make up the bulk of South Korean
fuel imports, reached an average US$44.12 per barrel this year from $94.29 for
the whole of 2008.
Song said liquefied petroleum gas (LPG) used in cars plunged 23.5 percent with
gasoline prices edging up 1.5 percent, causing overall transportation related
fuel outlays to dip 1.7 percent vis-a-vis December.
The official added that prices for kerosene and LPG used for heating and cooking
fell 7.9 percent and 20.5 percent each in the cited month, causing
housing-related spending and utilities to fall off 0.3 percent. Prices for
miscellaneous goods also dropped 0.2 percent compared to the previous month.
Prices of groceries, however, moved up 2.1 percent due to seasonal conditions,
with medical outlays moving up 1.1 percent.
The latest report, meanwhile, showed prices of industrial goods falling 0.7
percent from the month before, with service outlays edging up 0.1 percent.
The NSO declined to comment on future trends, but independent experts predicted
that sluggish economic growth and warmer weather may help bring consumer prices
down further in the coming months.
In 2008, South Korea's consumer prices moved up 4.7 percent annually as a result
of skyrocketing energy and raw material prices.
yonngong@yna.co.kr
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