Consumer inflation rebounds above 3% in August

by Kim Yeon-jae Posted : September 2, 2026, 08:37Updated : September 2, 2026, 08:48
Samsung Electronics Galaxy S25 series smartphones are displayed at Samsung Store Hongdae in Mapo District Seoul on Jan 23 2025 Aju Business Daily Yoo Dae-gil
Samsung Electronics' Galaxy S25 series smartphones are displayed at a store in Mapo, western Seoul on Jan. 23, 2025. Aju Business Daily Yoo Dae-gil
SEOUL, September 2 (AJP) - South Korea's consumer inflation rose above 3 percent last month, while core inflation climbed to 3.4 percent, the Ministry of Data and Statistics said on Wednesday. The increase was partly due to a base effect from last year's mobile phone fee discounts, which were offered as compensation for massive data leaks.

An index gauging consumer prices reached 120.05 in August, up 3.1 percent from a year earlier and 0.2 percent from July.

Annual inflation accelerated to 3.1 percent from 2.8 percent in July, returning above 3 percent after a one-month dip. The rate had reached 3.2 percent in June.

Communication prices rose 16.6 percent from a year earlier, with mobile phone charges up 26.7 percent on a base effect from temporary discounts offered last year. Service prices rose 3.7 percent.

The acceleration in services was concentrated in public services. Public service inflation rose to 6.5 percent from 1.4 percent in July, while personal service inflation held at 3.5 percent.

Core inflation excluding food and energy rose to 3.4 percent from 2.6 percent a month earlier. A separate measure excluding agricultural and petroleum products rose to 3.1 percent from 2.5 percent.

The Bank of Korea (BOK) had expected August inflation to rise from July, citing the base effect from large-scale mobile phone fee discounts a year earlier.

Industrial goods prices rose 3.7 percent from a year earlier. Petroleum product prices increased 14.2 percent, with diesel up 19.6 percent and gasoline up 11.5 percent on an annual basis, adding upward pressure to overall inflation.

The living necessities index rose 3.2 percent from a year earlier, accelerating from 2.5 percent in July. Non-food items increased 4.8 percent, while food prices rose 0.8 percent.

The fresh food index fell 6.7 percent from a year earlier, with fresh vegetable prices down 9.8 percent and fresh fruit prices down 10.0 percent. Fresh vegetable prices, however, jumped 12.5 percent from the previous month.