Korea's Inflation Rate Eases to 2.8% Amid Oil Price Drop

The consumer price inflation rate in South Korea cooled to 2.8% in July, marking the first decrease since the outbreak of the Middle East war. This slowdown was largely driven by a deceleration in petroleum product prices, which rose 15.5% from a year earlier compared to June's 24.7%. The international oil price drop from $100 per barrel in March and May to below $60 last month also contributed to this moderation.

According to the Ministry of Data and Statistics (MODS), the July consumer price index was 119.77, up 2.8% from a year earlier. This follows accelerated inflation rates of 2.2%, 2.6%, 3.1%, and 3.2% in March, April, May, and June, respectively.

An official at the Ministry of Data and Statistics (MODS) attributed the deceleration to a moderation in petroleum product price gains due to international oil prices stabilizing below $60 per barrel last month.