South Korea’s consumer prices increased by more than 3% year-on-year for the second consecutive month in June, attributed to the ongoing impact of the Middle East conflict on supply chains and oil prices. Data from the Ministry of Data and Statistics revealed a 3.2% rise in consumer prices last month, marking the most significant surge since December 2023.
Industrial product prices surged by 4.4%, primarily influenced by higher fuel costs, with fuel prices soaring by 24.7%, contributing significantly to the overall consumer price hike. Notably, gasoline prices rose by 23.1% and diesel prices by 33.7%, reflecting South Korea’s heavy reliance on energy imports.
The prices of agricultural and fishery products also saw a 3.2% increase, driven by spikes in domestic beef and rice prices, which rose by 7.5% and 11.7%, respectively. Green onion prices, a staple in Korean cuisine, skyrocketed by 37.1%, attributed to reduced cultivation areas and growth hindrances due to heat waves.
Service prices rose by 2.6% year-on-year, with public and private sector prices increasing by 1.6% and 3.4%, respectively. Excluding dining-out services, the private sector’s price surge reached 3.9%. Moreover, international flight ticket prices surged by 28.2%.
