SEJONG, SOUTH KOREA / RankWire.AI / – South Korea’s consumer inflation reached 3.1% in August compared to the same period last year, according to official statistics. This marks an increase from 2.8% in July, pushing the rate back above 3%. On a monthly basis, consumer prices grew by 0.2%. The Ministry of Data and Statistics reported that the consumer price index stood at 120.05, based on a 2020 benchmark of 100. A significant portion of the annual rise was driven by higher costs for fuel and mobile services.
Petroleum product prices increased by 14.2% from August 2025, adding to the expenses faced by households for transportation. Diesel prices went up by 19.6%, while gasoline prices rose by 11.5%. These petroleum items contributed 0.54 percentage points to the yearly inflation rate. Overall, transportation costs increased by 7.2% from the previous year. The government indicated that nationwide fuel price caps lowered August’s inflation by approximately 0.3 percentage points, helping to partially offset the impact of rising energy costs.
Costs for communication services also saw a sharp rise, largely due to a low comparison base from the previous year. Mobile phone charges jumped 26.7% from August 2025. SK Telecom had offered significant one-month discounts following a data breach during the same period last year. Without the influence of mobile service price changes, the government estimated that annual inflation would have been roughly 2.5%. Communication expenses overall increased by 16.6%, making this category one of the largest contributors to the annual increase in consumer prices.
Energy and telecom expenditures fuel upward pressure on prices
Core inflation metrics excluding food and energy showed a strengthening in underlying price pressures. Prices, excluding these categories, rose 3.4% year-on-year—the highest since May 2023. A different measure that excludes agricultural products and petroleum advanced by 3.1%. The index for essential living expenses, which tracks commonly purchased household items, increased by 3.2%. Within this index, food prices grew 0.8%, while nonfood costs saw a rise of 4.8% compared to last year.
Prices for industrial goods and services also experienced broad increases in August. Industrial product prices increased by 3.7%, with service costs rising at an identical rate. Electricity, gas, and water expenses went up by 0.4% from a year earlier. Insurance premiums surged by 13.4%, while overseas package tours rose 14.9%. Restaurant and lodging costs increased by 2.8%. Additionally, recreation and cultural expenses climbed 4.9%, contributing to the overall rise in service-related costs.
Falling fresh food prices contrast with overall inflation rise
Prices for agricultural, livestock, and fishery products provided some relief during August, decreasing by 2.6% compared to the previous year. Fresh food prices declined by 6.7%, primarily due to drops in vegetables and fruits. Vegetables fell 9.8%, while fruits decreased by 10%. Conversely, fresh fish and seafood prices increased by 4.1%. Imported beef prices went up by 6.2%, with domestic beef prices rising 3.3% over the same period.
The August inflation figures reveal uneven price movements across major household expenditure categories. Housing, water, electricity, and fuel costs increased by 1.9% year-on-year. Food prices remained relatively subdued as fresh produce became cheaper, while energy, communication, and several service sectors saw larger gains. The 3.1% headline inflation rate reflects these contrasting shifts within the consumer basket. The latest data also highlighted that temporary mobile pricing effects and higher petroleum costs significantly contributed to South Korea’s annual inflation increase.