S. Korea`s Sept. consumer prices rise 2.2 pct: gov`t report

By Koh Byung-joon
SEOUL, Oct. 1 (Yonhap) -- South Korea's consumer price growth remained unchanged
in September from the previous month, staying in the 2-percent range for a second
straight month, a report showed Thursday.
The consumer price index rose 2.2 percent last month from a year earlier, the
same annual growth rate as in August but the highest in three months, according
to the report by the National Statistical Office.
Compared with a month earlier, prices rose 0.1 percent, slowing from a 0.4
percent advance in August. Core inflation, excluding volatile oil and food
prices, grew 2.7 percent on-year last month, decelerating from the previous
month's 3.1 percent rise, the report showed.
The rise is attributed in part to an increase in service-sector prices including
home rental fees, electricity and tap water bills, the NSO said.
Runaway inflation once served as a heavy drag on government-led efforts to
stimulate the slumping economy as higher prices usually drive consumers to scale
back consumption.
Consumer prices surged 5.9 percent in July last year, the highest in 10 years,
driven by skyrocketing crude and commodity costs. Prices, however, have been
stabilizing ever since.
Inflation is one of the key indicators monitored by the government as a steep
rise could bring more weight in support of a swift withdrawal of stimulus
measures introduced over the past year to bolster slumping domestic demand and
corporate investment.
Consumer price growth has been slowing from 3.9 percent in the first quarter to
2.8 percent in the second quarter. It fell further to 2 percent in the third
quarter.
The finance ministry said in a separate report that prices will stabilize to
within the 2-percent range during the fourth quarter of this year despite upward
factors such as a possible hike in commodity costs.
South Korea's government aims to keep the nation's consumer prices under the
2.5-3.5 percent range.
kokobj@yna.co.kr
(END)