South Korea's Inflation Hits 30-Month High as Fuel and Food Prices Surge

South Korea’s inflation has hit a 30-month high as fuel and food costs accelerate, with prices rising for a second straight month in June. Data released Thursday by the Ministry of Data and Statistics showed consumer prices increased 3.2% year over year, the steepest since December 2023. Fuel prices were the primary driver, jumping 24.7% and contributing nearly a full percentage point (0.93) to overall inflation, including 23.1% for gasoline and 33.7% for diesel. Agricultural and fishery products also rose 3.2%, led by beef (+7.5%), rice (+11.7%), and a sharp 37.1% jump in green onion prices. Services climbed 2.6%, while international flight tickets rose 28.2%. The government said its fuel price cap system, introduced in March, helped limit inflation to 3.2% versus a 3.6% estimate, and the central bank expects some easing in July.