SEJONG, SOUTH KOREA / RankWire.AI / – South Korea’s consumer prices rose 3.1% in August from a year earlier, official data showed. The increase accelerated from 2.8% in July and returned headline inflation above 3%. The consumer price index reached 120.05, with 2020 set as the base of 100. Prices also increased 0.2% from July. The Ministry of Data and Statistics released the August figures on September 2.
Fuel costs remained a major source of price pressure during the month. Petroleum product prices climbed 14.2% from a year earlier, though the increase slowed from July. Diesel prices jumped 19.6%, while gasoline prices rose 11.5%. Petroleum products added 0.54 percentage point to annual consumer price growth. South Korea relies heavily on imported energy, leaving domestic fuel costs sensitive to changes in global energy markets.
Mobile phone service charges also recorded a sharp annual increase. Mobile service prices rose 26.7% from August 2025, reflecting an unusually low comparison base. SK Telecom had offered large discounts for one month last year following a data breach. Government calculations showed headline inflation would have been about 2.5% without that mobile service effect. The temporary comparison factor therefore accounted for a significant share of August’s annual increase.
Fuel and mobile costs lift headline inflation
Underlying inflation also strengthened in August. Core consumer prices, excluding food and energy, rose 3.4% from a year earlier. That marked the strongest annual core reading since May 2023. The index excluding agricultural products and petroleum increased 3.1% over the same period. Meanwhile, the living necessities price index rose 3.2%, with food prices up 0.8% and nonfood items increasing 4.8%.
Broader price data showed increases across industrial products and services. Industrial product prices rose 3.7% from a year earlier in August. Service prices also advanced 3.7%, while electricity, gas and water costs increased 0.4%. Insurance premiums rose 13.4% from a year earlier. Overseas package tour prices increased 14.9%, adding to the rise in service costs during the month.
Food prices move lower as services rise
Agricultural, livestock and fishery product prices moved in the opposite direction. The category fell 2.6% from a year earlier, helped by lower vegetable and fruit prices. Fresh food prices declined 6.7% annually, including a 9.8% drop in fresh vegetables. Fresh fruit prices fell 10%, while fresh fish and seafood prices rose 4.1%. Imported beef prices increased 6.2%, and domestically produced beef prices rose 3.3%.
The August report showed uneven inflation across major household spending categories. Transportation prices rose 7.2% from a year earlier, while communication costs increased 16.6%. Recreation and culture prices climbed 4.9%, and restaurant and accommodation costs rose 2.8%. Housing, water, electricity and fuel prices increased 1.9%. The government estimated nationwide fuel price caps reduced August inflation by about 0.3 percentage point, partially offsetting higher petroleum costs.