(LEAD) Consumer prices up 2.9 pct in Sept., fall to 2 pct levels

South Korea's consumer prices climbed 2.9% in September year-on-year, data revealed on Friday, falling to a 2% level, according to the Ministry of Data and Statistics. Energy costs remained high, while agricultural goods saw a price drop. In July, consumer prices grew by 2.8%, followed by a 3.1% increase in August. The latest report came as elevated petroleum prices persisted due to ongoing Middle East geopolitical tensions, surging by 14.8% in September. Diesel prices jumped 20%, and gasoline prices soared 11.8%.

The government claimed the fuel price cap, currently in place, had limited the overall rise in consumer prices by 0.6 percentage points. Industrial product prices increased 4.2% from a year earlier in September. Agricultural, livestock, and fishery product prices, however, fell 0.3%, mainly due to lower prices for napa cabbage and apples, which decreased by 9.2% and 15.2%, respectively. Beef and pumpkin prices rose by 6.6% and 46.9%, respectively.

Agricultural product prices faced upward pressure in September, due to the Chuseok holiday occurring in October the previous year. However, prices fell on-year for two consecutive months because of the government's discount programs and supply expansion, reported the finance ministry. On-year price decreases for agricultural, livestock, and fishery products amounted to 2.6% in August.

Service sector prices rose 2.7%, driven by higher insurance premiums and overseas package tour costs, which climbed 13.4% and 19.3%, respectively. Electricity, gas, and water prices increased 0.4% over the period. Core inflation, excluding volatile food and energy prices, also rose 2.8% year-on-year in September.