Consumer prices for 86% of goods rising despite easing inflationary pressure

[Photo by Lee Seung-hwan]

Korean consumer prices have risen at a slower pace, but the number of goods that have increased prices are rising, data showed on Monday.

Out of the 458 items that make up the country’s consumer price index last month, the number of goods whose price increased year-on-year was 395, representing 86.2 percent, according to the recent data from the Korean Statistical Information Service. In July last year when the inflation rate was at its peak, the number of goods with increased prices was 383 or 83.6 percent of the total.

Although the inflation rate has decreased by 2.1 percentage points over the past eight months from 6.3 percent in July 2022 to 4.2 percent last month, the number of goods with increased prices has actually increased.

Looking at the individual items, except for vegetables and fruits, the highest increase in prices were diesel at 80.0 percent, edible oil at 55.6 percent and gasoline at 47.0 percent in July last year. These items were directly affected by supply-side shocks such as rising crude oil and palm oil prices.

Last month, urban gas, dressings and regional heating showed the highest inflation rates. These items were affected by rising raw material prices, which led to increased costs.