Consumer prices rose by 2.1% last month, up 0.1 percentage point from the previous month’s rate of 2.0%, marking a third consecutive month of rises in the 2% range. More than half of the four-year universities across the country raised tuition, and food companies increased processed food prices, which influenced this rise.
According to the ‘March consumer price trends’ released by Statistics Korea on the 3rd, the consumer price index last month was 116.29 (2020=100), up 2.1% from the same month last year (113.95). The consumer price inflation rate (compared to the same month last year) recorded in the 1% range from August to December last year, stayed at 2.2% in January, 2.0% in February, and 2.1% in March, thus remaining in the 2% range for three consecutive months.
The prices of industrial products rose by 1.7% compared to the same month last year. In particular, the prices of processed foods increased by 3.6% year-on-year. This is the highest level in 15 months since December 2023 (4.2%). Compared to last month’s rate of 2.9%, it expanded by 0.7 percentage points. The contribution of processed foods rose from 0.24 percentage points in February to 0.30 percentage points in March. This indicates that processed foods contributed to a 0.30 percentage point increase in the overall inflation rate for March.
Last month, the price of petroleum products rose by 2.8% year-on-year, narrowing the increase compared to February (6.3%). Statistics Korea explained, “International oil prices have fallen, but petroleum product prices increased by 2.8% year-on-year due to continued high exchange rate impacts.” The contribution of petroleum products decreased from 0.24 percentage points to 0.11 percentage points.
Service prices rose by 2.3% from the same month last year. The inflation rate for personal services recorded a 3.1% increase year-on-year. Dining out and other services rose by 3.0% and 3.2%, respectively, compared to the same month last year. The cost of insurance services (15.1%) and apartment management fees (4.3%) saw relatively large increases. The price of sashimi (dining out) increased by 5.4% year-on-year, and chicken prices also rose by 5.3%. Public services increased by 1.4% year-on-year. Tuition for private schools rose by 5.2%.
The living price index, which reflects the prices of 144 items with high purchase frequency and expenditure, rose by 2.4% year-on-year. The fresh food index, related to “table prices,” dropped by 1.3% compared to the same month last year. While the price of fresh fruits fell by 6.1% year-on-year, the price of fresh fish rose by 3.6%, and fresh vegetables increased by 1.8%, affecting the overall trend.
The core inflation rate, which shows the fundamental price trend excluding food and energy according to the Organization for Economic Cooperation and Development (OECD), rose by 1.9% year-on-year. The domestic index excluding agricultural products and petroleum increased by 2.1% compared to the same month last year.
A Statistics Korea official noted, “The inflation rate has remained stable with all areas recording inflation rates in the 2% range in the first quarter of this year,” and emphasized the need to monitor future increases in petroleum, agricultural and marine products, and processed food prices.