Seoul: South Korea's inflation rate slowed in May, reaching 1.9% year-on-year, its lowest level in five months. In a statement, the Korean Statistics Agency attributed the slowdown primarily to falling oil prices, although the weaker local currency continued to pressure imports, raising import costs.
According to Qatar News Agency, consumer inflation had remained above the Bank of Korea's 2% target for four consecutive months through April before slightly easing in May. Processed food prices jumped 4.1% as major food producers passed on the higher costs of imported raw materials to consumers. By sector, service prices increased 2.3% on-year, led by a 3.2% rise in dining-out expenses.
Petroleum product prices fell 2.3%, contributing to a 0.09 percentage point drop in the overall inflation rate. Agricultural, livestock, and fishery product prices rose just 0.15% in May. This limited gain was largely due to a drop in vegetable prices.