Inflation sees smallest jump in six months as oil prices fall but apples surge

A customer shops at a discount chain store in Seoul on Thursday. [YONHAP]

Korea’s inflation dipped below 3 percent in January for the first time in six months, suggesting a drop in inflationary pressure.

Consumer prices, a key gauge of inflation, rose 2.8 percent on-year last month, down from a 3.2 percent increase a month earlier, according to data from Statistics Korea.

It is the first time the figure has fallen below the 3 percent level since July last year when prices gained 2.4 percent.

Inflation then rose to 3.4 percent in August, hitting gains of 3.7 and 3.8 percent in the following months before coming to 3.3 percent in November on high costs of energy and farm produce.

January marks the third month in a row where price gains have slowed.

Core inflation, which excludes volatile food and energy prices, went up 2.6 percent on-year in January.

Prices of daily necessities — 144 items closely related to people's everyday lives, such as food, clothing and housing — climbed 3.4 percent on-year this year.

Prices of agricultural, livestock and fishery products surged 8 percent on-year last month.

Agricultural products logged a 15.4 percent price growth, following a 15.7 percent increase in December. Of major items, prices of apples and tangerines spiked 56.8 percent and 39.8 percent, respectively, in January.

Prices of industrial products added 1.8 percent, as rising prices of ice cream, bread and clothing offset the falling prices of petroleum products. Diesel prices shed 11.9 percent on-year, and liquefied petroleum gas for vehicles fell 4.7 percent.

Service prices increased 2.6 percent on-year in January.

Last year, consumer prices advanced 3.6 percent on-year, slowing from a 5.1 percent gain in 2022. Excluding the 2022 figure, last year reported the steepest price growth since 2011.

The government has said it expects inflationary pressure to ease at a slower pace than earlier estimates before reaching its target rate of 2 percent by around the end of 2024.

The finance ministry expected this year's prices to grow 2.6 percent.

BY SEO JI-EUN, YONHAP [seo.jieun1@joongang.co.kr]