South Korea’s Inflation Below Central Bank’s Target for Third Consecutive Month.

Seoul: South Korea's consumer prices have remained below the central bank's 2 percent target for the third month in a row as of November, according to recent data. Consumer prices, a key measure of inflation, increased by 1.5 percent compared to the same month last year, following a 1.3 percent rise in October and a 1.6 percent increase in September. This trend marks the first time since September that inflation has stayed under the 2 percent target.According to Yonhap News Agency, the prices of agricultural, livestock, and fisheries products rose by 1 percent on-year last month. Vegetables experienced a notable increase of 10.4 percent due to adverse weather and lower shipments of essential items like radishes and cabbages, crucial for making kimchi. Conversely, fruit prices fell by 8.6 percent due to stable supply levels.Petroleum product prices saw a 5.3 percent decline from a year earlier in November, influenced by a drop in global oil prices. Baek Ji-seon, an official from the agency, attributed this decrease to the decline in international oil prices compared to the same period last year. Dubai crude, the benchmark for South Korea, averaged US$72.6 per barrel last month, a 13.1 percent decrease from last year.On a month-to-month basis, prices rose by 2.4 percent in November, primarily due to reduced fuel-tax cuts. Core inflation, excluding volatile food and energy prices, increased by 1.9 percent, slightly up from a 1.8 percent rise in October. Prices for daily necessities, which include 144 items such as food, clothing, and housing, climbed 1.6 percent in November, accelerating from a 1.2 percent increase in the previous month.First Vice Finance Minister Kim Beom-seok stated that inflation is expected to remain within the 2 percent range if no significant shocks occur. He emphasized ongoing government efforts to stabilize prices and support households affected by prolonged high inflation. South Korea has faced considerable inflationary pressure in recent years, with consumer prices surging 5.1 perce nt in 2022 and a lower 3.6 percent in 2023.To alleviate high energy costs during the winter, the finance ministry plans to extend its tariff rate quota on energy imports into next year. This system allows a specified volume of imports at reduced tariff rates, a critical measure for South Korea, which heavily relies on energy imports.