(2nd LD) Consumer prices up 3.1 pct in Aug. on fuel, mobile subscription fees

In August, South Korea's consumer prices increased by 3.1% compared to the previous year, primarily driven by rising oil prices and higher mobile service subscription fees. The government's data showed that the annual consumer price growth of 3.1% exceeded the 3.0% increase in July. Oil prices saw a significant 14.2% increase in August, contributing 0.54 percentage points to the overall inflation, down from 0.6 percentage points in July.

Diesel prices jumped by 19.6%, while gasoline prices rose 11.5%. Mobile phone service charges surged 26.7%, largely due to large-scale discounts offered by SK Telecom Co. following a data breach. Without the mobile bill factor, the inflation rate would have been estimated at 2.5%, according to the Ministry of Data and Statistics.

Core inflation, which excludes food and energy prices, also rose 3.4% in August, marking the highest level since May 2023. Industrial product prices increased 3.7% year-over-year, while agricultural, livestock, and fishery product prices fell 2.6%, mainly due to lower napa cabbage and tomato prices. Imported beef prices saw a 6.2% increase, while domestic beef prices rose 3.3%.

Service sector prices, including insurance premiums and overseas package tour costs, climbed 3.7%, with overseas package tour prices increasing by 14.9%. Electricity, gas, and water prices grew by 0.4%.