SEJONG, SOUTH KOREA / RankWire.AI / – South Korea’s consumer prices increased by 3.1% in August compared to the same month last year, according to official statistics. This figure represents a rise from 2.8% recorded in July, pushing the headline inflation rate above 3%. The consumer price index reached 120.05, with 2020 designated as the base year at 100. Additionally, prices grew by 0.2% from July. The Ministry of Data and Statistics published the August data on September 2.
Fuel expenses continued to exert significant upward pressure throughout the month. Prices for petroleum products rose 14.2% year-over-year, though the pace slowed compared to July. Diesel costs surged by 19.6%, while gasoline prices increased by 11.5%. Petroleum-related items contributed 0.54 percentage points to the annual consumer price rise. Given South Korea’s heavy dependence on imported energy, domestic fuel prices remain vulnerable to fluctuations in global energy markets.
The monthly figures also highlighted a sharp increase in mobile phone service charges. Prices for mobile services went up by 26.7% from August 2025, influenced by an unusually low comparison base. Last year, SK Telecom offered substantial discounts for a month following a data breach. According to government calculations, headline inflation would have hovered around 2.5% if not for the mobile service price effect. This temporary comparison factor thus played a sizable role in August’s annual inflation figure.
Rising fuel and mobile costs drive headline inflation
Core inflation, which excludes food and energy, also gained strength in August, with prices rising 3.4% from the previous year. This marked the highest annual core inflation rate since May 2023. When excluding agricultural products and petroleum, the index increased by 3.1% over the same period. Meanwhile, the index tracking essential living expenses rose 3.2%, with food prices up 0.8% and nonfood items climbing 4.8%.
Broad price data indicated upward trends in both industrial goods and services. Industrial product prices went up by 3.7% compared to the previous year in August, while service costs also increased by 3.7%. Electricity, gas, and water expenses rose by 0.4%, and insurance premiums surged 13.4%. Additionally, overseas package tour prices climbed 14.9%, further contributing to the increased costs in services during the month.
Food prices decline as service costs rise
Meanwhile, prices for agricultural, livestock, and fishery products moved in the opposite direction, decreasing 2.6% from a year earlier, supported by lower vegetable and fruit costs. Fresh food prices fell 6.7% annually, with fresh vegetables dropping 9.8%. Fresh fruit prices declined by 10%, while fresh fish and seafood costs increased by 4.1%. Imported beef prices rose 6.2%, and domestically produced beef prices increased by 3.3%.
The August report revealed uneven inflation across key household spending categories. Transportation prices went up by 7.2% compared to the previous year, while communication costs increased by 16.6%. Recreation and culture expenses rose 4.9%, and restaurant and accommodation costs grew by 2.8%. Prices for housing, water, electricity, and fuel increased 1.9%. The government estimated that nationwide fuel price caps reduced August inflation by approximately 0.3 percentage points, partially offsetting the rise in petroleum costs.