SEJONG, SOUTH KOREA / RankWire.AI / – South Korea’s consumer inflation increased to 3.1% in August from the previous year, according to official figures. The rate was 2.8% in July and has now climbed above 3%. Consumer prices also grew 0.2% compared to July. The Ministry of Data and Statistics indicated the consumer price index hit 120.05, using 2020 as a base of 100. Rising fuel and telecom charges contributed significantly to the annual gain.
Petroleum prices surged 14.2% from August 2025, adding pressure on household transportation expenses. Diesel prices jumped 19.6%, and gasoline costs increased 11.5%. Petroleum products added 0.54 percentage points to the yearly inflation rate. Transportation costs overall rose by 7.2% from the previous year. The government noted that nationwide fuel price caps reduced August inflation by approximately 0.3 percentage points, partially offsetting the impact of higher energy prices.
Mobile service charges also saw sharp increases due to a low comparison base from last year. Charges jumped 26.7% from August 2025. SK Telecom offered large one-month discounts after a data breach during the same period last year. Without this effect, the government estimated annual inflation would have been about 2.5%. Overall, communication prices increased 16.6%, making it one of the categories with the largest annual gains in the consumer basket.
Fuel and telecom costs lift inflation further
Price pressures behind the headline inflation also grew stronger. Core prices excluding food and energy increased 3.4% from a year earlier, the highest since May 2023. Another measure, excluding agricultural products and petroleum, rose 3.1%. The living necessities index, which tracks everyday household items, grew 3.2%. Food prices went up 0.8%, while nonfood prices rose 4.8% year-over-year.
Prices for industrial goods and services also showed broad increases. Industrial product prices climbed 3.7%, and service prices matched that rise. Electricity, gas, and water costs increased by 0.4%. Insurance premiums rose 13.4%, and overseas package tour prices jumped 14.9%. Restaurant and accommodation prices grew 2.8%. Costs for recreation and culture increased 4.9%, contributing to the overall rise in service expenses.
Despite inflation, fresh food prices decline
Prices for agricultural, livestock, and fishery products declined slightly during August. The category was 2.6% lower than a year earlier. Fresh food prices fell 6.7%, mainly in vegetables and fruit. Vegetables dropped 9.8%, and fruit decreased 10%. Fish and seafood prices, however, rose 4.1%. Imported beef prices increased 6.2%, while domestic beef prices gained 3.3% over the same period.
The August data show uneven inflation across key household categories. Costs for housing, water, electricity, and fuel increased 1.9%. Food prices remained relatively stable as fresh produce became cheaper. Meanwhile, energy, communication, and several service sectors experienced larger increases. The 3.1% headline rate reflects these contrasting movements within the consumer basket. The data also indicates that temporary mobile pricing effects and higher petroleum costs played a major role in South Korea’s annual inflation increase.