S Korea's inflation growth hits 10-year high in Nov amid rising oil prices
South Korea's consumer prices rose at the fastest pace in nearly 10 years in November due to surging energy costs and high prices of farm products, data showed Thursday, lending support to the view that the central bank may further raise the policy rate.
The consumer prices increased 3.7 percent in November from a year earlier, accelerating from a 3.2 percent on-year gain in October, Yonhap news agency quoted data compiled by Statistics Korea.
Consumer inflation rose...
South Korea's consumer prices rose at the fastest pace in nearly 10 years in November due to surging energy costs and high prices of farm products, data showed Thursday, lending support to the view that the central bank may further raise the policy rate.
The consumer prices increased 3.7 percent in November from a year earlier, accelerating from a 3.2 percent on-year gain in October, Yonhap news agency quoted data compiled by Statistics Korea.
Consumer inflation rose 0.4 percent in November from a month ago.
It marked the fastest on-year gain since December 2011, when consumer prices spiked 4.2 percent.
The country's consumer inflation grew more than two percent - the central bank's midterm inflation target - for the eighth straight month in November. Inflation growth stayed above 3 per cent for the second month last month.
The pickup in inflation was mainly attributable to rising oil prices and the high prices of agricultural products. Demand-pull inflationary pressure has also built up amid the economic recovery.
Prices of petroleum products jumped 35.5 per cent on-year, the steepest gain since July 2008, as oil prices surged amid the global economic recovery. Prices of industrial products climbed 3.5 per cent, the fastest in 10 years.
Prices of Dubai crude, South Korea's benchmark, averaged US$80.30 per barrel in November, up 36.9 percent from a year earlier. South Korea depends on imports for its energy needs.
The impact of a fuel tax cut on inflation was limited as it usually takes time to affect energy prices.
South Korea cut fuel taxes by a record 20 percent on Nov 12 in a bid to curb inflationary pressure. The measure will be effective until April 30 next year.
Prices of agricultural, livestock and fishery products shot up 7.6 percent on year, accelerating from a 0.6 percent gain in October.
Core inflation, which excludes volatile food and oil prices, rose 1.9 percent on-year last month.
Prices of daily necessities - 141 items closely related to people's daily lives, such as food, clothing and housing - climbed 5.2 percent on year in November. It marked the fastest on-year rise since August 2011.
Service prices also rose as private consumption recovered, in line with the implementation of eased virus restrictions meant to gradually return to pre-pandemic normalcy. Prices of personal services gained three percent on-year, the fastest since January 2012.
Home prices increased 1.9 percent, marking the 19th straight month of rises. Housing prices extended their gains despite the government's efforts to curb home prices.
The statistics office said consumer prices are expected to extend their substantial growth in December.
However, Finance Minister Hong Nam Ki said inflation growth is likely to slow in December, as oil prices showed some signs of stabilisation. The impact of fuel tax cuts will be also felt starting this month, he added.
- Bernama
