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S. Korea's inflation at near 24-year high in July on high energy, food prices

Economy 08:00 August 02, 2022

By Kim Soo-yeon

SEOUL, Aug. 2 (Yonhap) -- South Korea's consumer prices rose at the fastest pace in almost 24 years in July due to high energy and food prices, data showed Tuesday, in the latest sign that the country faces growing inflationary pressure.

Consumer prices soared 6.3 percent last month from a year earlier, accelerating from a 6 percent on-year spike in June, according to the data from Statistics Korea.

It marked the sharpest on-year increase since November 1998, when consumer inflation jumped 6.8 percent. The inflation rate stayed in the 6 percent range for the second straight month.

Consumer prices rose above 2 percent -- the central bank's inflation target over the medium term -- for the 16th straight month in July.

Core inflation, which excludes volatile food and oil prices, climbed 3.9 percent on-year last month.

Inflationary pressure has built up as crude oil and other commodity prices rose due to the protracted war between Russia and Ukraine, and global supply disruptions. A recovery in demand from the pandemic also exerted upward pressure on prices.

People shop for vegetables at a discount grocery store chain in Seoul, in this July 20, 2022, file photo. (Yonhap)


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