S. Korea's consumer prices in March rise by 2.1% year-on-year

Inflation here in Korea in March remained within the two-percent range for the third month in a row.

Park Jun-han covers the latest finding and more.

South Korea's consumer price data shows steady inflation in the low 2-percent range over the past three months.

In March, consumer prices increased by 2-point-1 percent compared to March the previous year. The inflation over the past three months is slightly higher than September to December last year when inflation was in the 1-percent range.

The price of cabbages went up by 49-point-7 percent ( 1) and radishes went up by 86-point-4 percent ( 2).

The price of processed foods rose by 3-point-6 percent ( ).

That's the biggest jump in fifteen months, pushing overall inflation up by point-three percentage points.

Statistics Korea attributed the increase in processed food prices to three factors: a rise in raw material prices, the high foreign exchange rate, and rising labor and energy costs.

Meanwhile, the cost of services also went up, with both public and personal services seeing price rises.

The price of public services, which include things like transport and tuition fees, increased by 1-point-4 percent year-on-year.

The increase was mainly due to the rise in private university tuition.

The price of personal services is 3-point-1 percent higher than a year ago.

The increase was due to increased demand in trips in March.

Finance Minister Choi Sang-mok pledged at the Ministerial Meeting on Economic Affairs to use the government's full range of capabilities to stabilize perceived inflation.

"In April and May, we will allocate an additional 30 billion Korean won to support agricultural product discounts, and we will supply more than a hundred tons of cabbages and radishes to the market every day to stabilize supply and demand.

We will also lower the price burden of food ingredients through new quota tariffs on raw pork meat and raw egg products."

The Bank of Korea on Wednesday said that the inflation rate is expected to remain stable around the target level of 2-percent.

It also added that there is still a lot of uncertainty around the foreign exchange rate and oil price movements, as well as domestic demand.

The central bank said it will keep a keen eye on future inflation levels.

Park Jun-han, Arirang News.