The consumer price index (CPI) in October 2024 rose by 1.3% y-o-y, down 0.3%p from September (1.6%), reaching the lowest rate of increase in 3 years and 9 months (45 months)

since January 2021 (0.9%). This is due to the expanded decline in petroleum prices (-2.3% m-o-m, -10.9% y-o-y) and the slowdown in the price increase of agricultural, livestock, and

fishery product prices to the 1% range (-1.1% m-o-m, +1.2% y-o-y).

                                                                           Consumer Price Index

Excluding volatile food and energy prices, the core inflation rate, which shows the trend in prices, appears to be stable, with an increase of 1.8% y-o-y (2.0% in September). The CPI for living necessities, composed of items with a high share of household spending, also climbed up by 1.2% y-o-y (1.5% in September), showing the lowest rate of increase in 45 months since January 2021 (0.8%).

                                                                            Core Inflation

                                                                                                                     CPI for living necessities

In November, inflation is expected to remain stable within the 2% range, despite upward pressure from factors like a slower decline in petroleum prices, assuming no significant external shocks. However, as the burden of grocery prices, especially for vegetables, persists, the government plans to increase supply of key ingredients, including cabbage (24,000 tons), radish (9,100 tons), and seasoning vegetables like chili, garlic, and onion (2,000 tons). In addition, in order to ease the cost burden on consumers, discounts of up to 40% on cabbage and radish and up to 50% on green onions, garlic, sea salt, and salted seafood will be provided. The government will also continue monitoring the price trends of major items to proactively address any inflationary pressures.

Please refer to the attached files.