July consumer price inflation rises 2.8%...slows on stabilization in oil and agricultural products

The consumer price inflation rate in July came in at 2.8%, falling back into the 2% range for the first time in three months. The decline in international oil prices and the government's price stabilization measures reduced the pace of increases in petroleum product prices, while prices of agricultural, livestock, and fishery products remained relatively stable. According to the National Data Agency, the consumer price index for July stood at 119.77 (2020=100), up 2.8% from a year earlier. The upward trend in the 3% range that continued from 3.1% in May to 3.2% in June eased somewhat. Petroleum product prices rose 15.5% from the same month last year, a much smaller increase than June's 24.7%. The government estimated that the price had fallen by 0.3 percentage points last month due to the effects of the maximum oil price system and other measures. Prices of agricultural, livestock, and fishery products rose only 0.9%. Agricultural product prices fell 2.2% overall, as prices of green onions and rice rose, but spinach, cabbage, pumpkins, and others dropped sharply. However, core inflation excluding food and energy rose 2.6%, a larger increase than in June, driven by higher prices of durable goods and personal services.