August Price Index Overview
South Korea's Ministry of Economy and Finance announced on September 2 that August's Consumer Price Index (CPI) rose 1.7% year-on-year, slowing 0.4 percentage points from July's 2.1% increase. Core inflation excluding food and energy recorded 1.3% growth.
Price Trends by Category
Agricultural, Livestock, and Marine Products: Rose 4.8% year-on-year. Agricultural product prices shifted from decline to increase, while livestock and marine product price increases expanded, serving as the main driver.
Petroleum Products: Fell 1.2% due to declining international crude oil prices. Energy price declines contributed to suppressing overall inflation rates.
Processed Foods: Rose 4.2%. Reduction of discount events for certain items became a price-pushing factor.
Government's Future Response Policy
The Ministry of Economy and Finance stated, "While uncertainties continue due to abnormal weather and geopolitical factors, the government will do its utmost to stabilize cost-of-living inflation." It announced a policy to prioritize stabilizing food prices directly affecting people's lives, conducting detailed examination of supply and demand conditions for major items and responding swiftly to fluctuation factors.
Policy Implications for Price Stability
While August's inflation rate deceleration shows temporary improvement, the shift of agricultural product prices to increases and continued geopolitical uncertainties remain potential risk factors for price stability. The government demonstrates a stance of continuing policy responses focused on cost-of-living inflation management, particularly centered on food products.