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Consumer prices grow at slower pace in Aug. amid falling oil prices

All News 08:00 September 02, 2022

By Kim Soo-yeon

SEOUL, Sept. 2 (Yonhap) -- South Korea's consumer prices grew at a slower pace in August after running at a 24-year high the previous month as global oil prices slid, data showed Friday, in a sign that high inflation may have peaked.

Consumer prices, a key gauge of inflation, jumped 5.7 percent last month from a year earlier, slowing from a 6.3 percent surge in July, according to the data from Statistics Korea.

The on-year growth of consumer prices slowed for the first time in seven months. The inflation rate stayed in the 6 percent range for the second straight month in July.

Consumer prices rose above 2 percent -- the central bank's inflation target over the medium term -- for the 17th straight month in August.

The slower inflation came as global oil prices fell amid concerns that aggressive monetary tightening in major economies could slow the global economy and weaken demand for fuel.

Prices of Dubai crude, South Korea's benchmark, stood at US$96.63 per barrel on average in August, down 6.3 percent from the previous month. The oil prices were still up 39 percent from a year ago.

Inflationary pressure in South Korea 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.

Citizens shop for vegetables at a discount store in Seoul on Aug. 28, 2022. (Yonhap)

Citizens shop for vegetables at a discount store in Seoul on Aug. 28, 2022. (Yonhap)


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