S. Korea’s consumer price rises 1.5 pct in November

SEOUL, Dec. 3 (Xinhua) — South Korea’s consumer price inflation hovered below 2 percent for the third consecutive month due to a downturn in oil products price, statistical office data showed Tuesday.
Consumer price index (CPI) rose 1.5 percent in November from a year earlier, after swelling 1.6 percent in September and 1.3 percent in October, according to Statistics Korea.
The headline inflation has roughly been on the decline this year from 3.1 percent in February to 2.9 percent in April, 2.4 percent in June and 2.0 percent in August.
The Bank of Korea (BOK) lowered its benchmark interest rate by 25 basis points to 3 percent in November after cutting it by a quarter percentage point in October amid lower inflation.
Oil products price tumbled 5.3 percent in November from a year earlier after sliding in double digits in the previous month. It pulled down the overall headline inflation by 0.22 percentage points.
Price for gasoline and diesel retreated 3.4 percent and 10.4 percent each, with kerosene price slipping 7.2 percent.
Price for industrial products, including oil products, added 0.6 percent last month, dragging up consumer price inflation by 0.20 percentage points.
Processed food price advanced 1.3 percent in November on a yearly basis, lower than an increase of 1.7 percent in the previous month.
Price for agricultural, livestock and fishery products grew 1.0 percent last month, lower than a growth of 1.2 percent in the prior month.
Price for electricity, natural gas and tap water gained 3.0 percent, pulling up the overall inflation by 0.12 percentage points.
Private service price, including eating-out cost, expanded 2.9 percent last month, while public service price increased 0.9 percent.
Housing rent, including Jeonse and monthly rent, inched up 0.5 percent in November from a year earlier.
Jeonse is South Korea’s unique contract between two households where a landlord grants a two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.
Livelihood items index, which gauges price for daily necessities, rose 1.6 percent in November on a yearly basis after picking up 1.2 percent in the previous month.
Fresh food index, which measures the price for fish, shellfish, fruit and vegetable, added 0.4 percent last month, lower than a growth of 1.6 percent in the prior month.
Demand-side inflationary pressure remained relatively low. Core consumer price index, which excludes volatile agricultural and oil products, edged up 1.8 percent in November. ■