On the 30th of last month, citizens are selecting vegetables at a large mart in Seoul./Courtesy of Yonhap News agency

The consumer price index in June recorded an increase of 2%. The consumer price index, which had dropped to 1% in May, rose back to 2% after two months.

According to the 'June Consumer Price Trends' released by the Statistics Korea on July 2, last month's consumer price index was 116.31 (2020=100), which is a 2.2% increase compared to the same month last year. This is the highest figure since January of this year. After recording 2.2% in January, it showed a gradual decline and fell to 1.9% in May, but last month the increase surged again.

The reason is that the prices of oil and processed foods increased, and the decrease in agricultural product prices moderated. Last month, the price of oil rose by 0.3% compared to the same month last year, while processed food jumped by 4.6%. The prices of bread (6.4%) and coffee (12.4%) rose, marking the highest level for processed foods since November 2023 (5.1%). Processed foods contributed 0.39 percentage points to the overall price increase.

The price of ramen, specifically mentioned by President Lee Jae-myung, increased by 6.9%. This is the highest figure since September 2023 (7.2%), marking 21 months.

In May, agricultural product prices fell by 4.7%, but last month they only decreased by 1.8%. Director Park Byeong-seon of the Statistics Korea Price Trends Division noted, "The price of garlic increased due to a decrease in the area planted last year, which led to reduced production," and added, "While prices of products like pumpkins rose due to diminished sunshine hours this year, fruits fell compared to last year."

Last month, the price of sweet rice rose by 33.0% and garlic by 24.9%, while pear prices fell by 25.2%, apples by 12.6%, and melons by 6.8%.

Prices of livestock and fishery products increased uniformly. Compared to June of last year, livestock prices rose by 4.3% last month, and fishery prices by 7.4%. By item, mackerel rose by 16.1%, pork by 4.4%, eggs by 6.0%, and domestically produced beef by 3.3%.

The service price increased by 2.4% compared to the same month last year, while goods rose by 1.8%. Repair costs for home appliances (25.8%) and insurance service fees (16.3%) increased, leading to an overall 3.3% rise in personal service prices. Additionally, private university tuition fees rose by 5.2%, while dental treatment costs increased by 3.2%, resulting in a 1.2% rise in public services. Rent increased by 0.8%.

Core inflation also recorded around 2%. The consumer price index excluding food and energy, based on OECD standards, rose by 2.0%, matching last month's level. The index excluding agricultural products and petroleum increased by 2.4%.

The fresh food index fell by 1.7% compared to the previous year. The living cost index, which reflects consumer's felt prices, increased by 2.5%. The living cost index consists of 144 key daily necessities with high purchase frequency and significant expenditure.

Director Park stated, "Although the price increase for fruits has decreased, the base effect occurred because last year's prices were very high," and added, "The index level is still extremely high."

※ This article has been translated by AI. Share your feedback here.