South Korea's Consumer Price Rises 2.8 Percent in January

The consumer price index (CPI) came in at 113.15 in January, up 2.8 percent compared to the same month of last year, according to Statistics Korea.

The headline inflation fell below 3 percent in six months, slowing down from 3.8 percent in October last year to 3.3 percent in November and 3.2 percent in December.

Oil products price retreated 5.0 percent in January from a year earlier, dragging down the overall headline inflation by 0.21 percentage points.

Diesel and kerosene prices slumped 11.9 percent and 8.7 percent respectively.

Price for industrial products, including oil products, was up 1.8 percent last month as the processed food price rose 3.2 percent.

Price for agricultural, livestock and fishery products advanced 8.0 percent in January from a year earlier.

Agricultural product price soared 15.4 percent in January after jumping 15.7 percent in the previous month. It raised the overall inflation by 0.59 percentage points.

Livestock product price slipped 0.6 percent, but fishery product price gained 2.2 percent.

Price for electricity, natural gas and tap water rose 5.0 percent last month, pulling up the inflation by 0.19 percentage points.

Electricity bill went up 4.3 percent, with city gas and heating costs picking up 5.6 percent and 12.1 percent each.

Private service price, including eating-out cost, increased 3.5 percent last month, and public service price added 2.2 percent.

The eating-out expense advanced 4.3 percent, drawing up the inflation by 0.60 percentage points.

The service price, excluding the dining-out cost, gained 3.0 percent in January on a yearly basis.

Housing rent, including Jeonse and monthly rent, retreated 0.2 percent in the cited month.

Jeonse is South Korea's unique contract between two households where a landlord grants the two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.

The livelihood data-x-items index, which gauges price for daily necessities, expanded 3.4 percent in January after going up 3.7 percent in the previous month.

The fresh food index, which measures the price for fish, shellfish, fruit and vegetable, surged 14.4 percent in January, slightly slower than an increase of 14.5 percent in the prior month.

Demand-side inflationary pressure hovered high. The core consumer price index, which excludes volatile agricultural and oil products, climbed 2.6 percent last month.

The OECD-method core price, excluding volatile energy and food costs, increased 2.5 percent.

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