S. Korea's inflation hits 30-month high on soaring fuel prices
South Korea's consumer inflation accelerated to a 30-month high in June as rising fuel costs linked to the Middle East conflict continued to push up prices, government data showed Thursday, Qazinform News Agency cites Yonhap.
Consumer prices rose 3.2 percent from a year earlier, marking the second consecutive month inflation remained above 3 percent and the highest annual increase since December 2023.
The surge was driven primarily by energy costs, with fuel prices jumping 24.7 percent year-on-year, including a 23.1 percent rise in gasoline prices and a 33.7 percent increase in diesel prices. Food prices also remained elevated, with agricultural and fishery products rising 3.2 percent, while green onion prices surged 37.1 percent due to reduced cultivation and heat-related crop damage.
Core inflation, which excludes food and energy, rose 2.5 percent, from the previous year last month.
The Ministry of Finance and Economy said a fuel price cap introduced in March helped contain inflation, estimating consumer price growth would have reached 3.6 percent without the measure.
The Bank of Korea expects inflation to ease slightly in July but warned that strong domestic demand could offset lower global oil prices, keeping inflation elevated.
Earlier, Qazinform reported South Korea unveils the $518 billion plan for a new semiconductor hub.