South Korea's consumer prices rose 2.2 percent in March from a year earlier, government data showed Thursday. The increase, exceeding the government's 2 percent inflation target, was mainly driven by a surge in global oil prices due to prolonged Middle East tensions. It marks the steepest rise since December's 2.3 percent, according to the Ministry of Data and Statistics.
South Korea's consumer prices rose 2.2 percent in March from a year earlier, exceeding the government's 2 percent inflation target, according to data released Thursday by the Ministry of Data and Statistics. The increase marks the highest since December's 2.3 percent rise. Petroleum products led the surge, jumping 9.9 percent on-year—the sharpest since October 2022's 10.3 percent amid the Russia-Ukraine war.
Diesel prices climbed 17 percent and gasoline 8 percent on-year. Global oil prices have spiked after the Strait of Hormuz was effectively closed following U.S.-Israeli strikes on Iran in late February, disrupting supplies. South Korea, heavily reliant on energy imports, felt the impact acutely.
Agricultural, livestock, and fishery products edged down 0.6 percent overall, driven by a 5.6 percent drop in agricultural prices, though livestock rose 6.2 percent and fishery 4.4 percent. Service prices increased 2.4 percent, fueled by higher insurance costs. Core inflation, excluding volatile food and energy, also rose 2.2 percent.
