South Korea Inflation Hits 30-Month High on Fuel, Food Prices

South Korea’s inflation hit a 30-month high as fuel and food prices accelerated, with June data showing a renewed cost pressure on consumers. Prices rose 3.2% year over year for a second straight month, the biggest increase since December 2023, according to the Ministry of Data and Statistics released Thursday. Fuel accounted for much of the surge as fuel costs jumped 24.7%, adding nearly a full percentage point, 0.93, to overall consumer price growth. Gasoline rose 23.1% and diesel climbed 33.7%. Food inflation also increased 3.2%, driven by domestic beef and rice, with green onions singled out for a 37.1% spike linked to shrinking cultivation areas and heat-wave crop damage. Services rose 2.6%, international flight tickets climbed 28.2%, and core inflation was up 2.5%. Officials said a fuel price cap introduced in March limited inflation to 3.2% versus an estimated 3.6%.