The consumer price index (CPI) in August 2024 rose by 2.0.% y-o-y, down 0.6%p from July (2.6%), reaching the lowest rate of increase in 3 years and 5 months (41 months) since March 2021 (1.9%). This decline was influenced by the significant slowdown in the price increases of agricultural, livestock, and fishery products (up 2.1% m-o-m, 2.4% y-o-y) and petroleum products (0.0% m-o-m, 0.1% y-o-y) due to the arrival of new fruits and a drop in global oil prices in August.

                                                                           Consumer Price Index

Excluding volatile food and energy prices, the core inflation rate, which shows the trend in prices, increased by 2.1% y-o-y (compared to 2.2% in July), marking the lowest level in 33 months since November 2021 (1.9%). The CPI for living necessaries, composed of items with a high share of household spending, also climbed up by 2.1% y-o-y (compared to 3.0% in July), showing the lowest rate of increase in 13 months since July 2023 (2.0%).

                                                                            Core Inflation

                                                                                                                     CPI for living necessaries 

The current trend of stable inflation rate in the low 2% range is expected to continue if there are no additional shocks such as extreme weather events or instability in global oil prices. However, the government will remain vigilant and make every effort to achieve a firm anchoring of price stability. In particular, as a surge in demand for essential goods is anticipated with the upcoming Chuseok holiday, the government will bolster its endeavors to stabilize prices by supplying a record 170 thousand tons of 20 key items, including cabbage, radishes, apples, and pears, and by promoting 70 billion won discount support for agricultural, livestock, and fishery products.

Please refer to the attached files.