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

South Korea's consumer prices increased by 2.9 percent in September compared to the previous year, according to data released on Friday. Energy costs remained high, while prices of agricultural goods saw a decrease. The consumer price growth returned to 2 percent in September, following 2.8 percent in July and 3.1 percent in August.

The rise in energy prices, particularly petroleum products, rose by 14.8 percent year-on-year in September. Diesel prices surged by 20 percent, while gasoline prices increased by 11.8 percent. The government attributed the overall increase in consumer prices by 0.6 percentage points to the fuel price cap in place. Industrial product prices grew by 4.2 percent, computer prices jumped by 27.4 percent, and smartphone prices rose by 8.3 percent due to higher semiconductor costs and new model launches.

Agricultural, livestock, and fishery product prices declined by 0.3 percent, primarily due to lower prices of napa cabbage and apples. Beef and pumpkin prices increased significantly by 6.6 percent and 46.9 percent, respectively. The government-led discount events and increased supply contributed to the decline in agricultural product prices.

Prices of fruits like apples and pears fell due to a good harvest and higher shipments ahead of the Chuseok holiday. Prices in the service sector rose by 2.7 percent, with higher insurance premiums and overseas package tour prices increasing by 13.4 percent and 19.3 percent, respectively. Core inflation, excluding volatile food and energy prices, advanced by 2.8 percent year-on-year in September.