Korea’s July inflation below 3% for second straight month on lower oil prices

South Korea’s consumer prices rose 2.3 percent in July, staying below 3 percent for the second straight month as price gains slowed on lower fuel prices.

According to Statistics Korea on Wednesday, the country’s consumer price index (CPI) jumped 2.3 percent year over year in July, marking the lowest level in 25 months after 2.3 percent in June 2021.

The CPI rose 5.2 percent in January, up slightly from 5 percent in December last year. The index, however, has eased to 4.8 percent in February, 4.2 percent in March, 3.7 percent in April, 3.3 percent in May, and 2.7 percent in June.

The overall slowdown in inflation was led by a decline in oil prices.

Prices of petroleum products fell 25.9 percent from a year earlier in July, the steepest decline since the agency began compiling related data in January 1985.

Living necessaries price index jumped 1.8 percent from a year ago.

The core CPI counting out volatile food and energy factors rose 3.9 percent in July, the lowest since 3.6 percent in April last year.