Prices in September are around 1% for the first time in three and a half years...October rate cut 'notice'

54% of cabbage before the kimchi-making season ↑…'Attention' to cut interest rates in October

Consumer price growth slowed to 1.6% last month

1.5% increase in the index of living prices close to perceived prices

Oil Prices 7.6% ↓…Bring down the whole price.

[Anchor]
Consumer price growth slowed to 1% in September for the first time in three and a half years.

However, ahead of the kimchi-making season, the price of vegetables such as cabbage and radish has risen sharply.

Attention is focusing on whether prices, which have fallen to the 1% range, will be a variable for the October rate cut.

Reporter Oh In-seok on the report.

[Reporter]
Consumer price growth, which had been steady at around 2% for five months since April, slowed to 1.6% in September.

It is the first time in three and a half years that inflation has fallen to the 1% range since March 2021 when it was 1.9%.

The living price index, which is close to the perceived price, rose 1.5% and fell to the 1% range.

Oil prices fell 7.6%, dragging down overall prices.

Oil prices turned downward for the first time in seven months, with gasoline down 8% and diesel down 12%.

However, if international oil prices fluctuate due to the Iran-Israel conflict, oil prices may become unstable again.

Agricultural prices rose 3.3% in September due to a surge in vegetable prices.

Due to the heat wave, vegetables jumped 11.5%, with cabbages rising 54% and radishes rising 42%, and lettuce 32%.

Fruit prices were relatively stable, with apples falling 4.8%.

[Kong Mi-sook / Statistics Korea Economic Trend Statistics Director: (Future prices) Especially vegetables are affected by short-term effects, so we need to see what the weather is like. Oil is heavily weighted, so it will change depending on how international oil prices change.]

The government predicts that price stability will continue around 2% if there are no external shocks such as extreme weather or oil price instability.

The allocation tariff for cabbage and radish, which are still high in price, will be extended until the end of the year, and an additional 10,000 tons of cabbage will be supplied.

Attention is focusing on whether consumer prices will be a variable in October's decision to cut interest rates as consumer prices fall to the 1% range in September.

However, the Bank of Korea's consistent position is that it is difficult to overlook risk signals in terms of financial stability, such as rising real estate prices and rising household debt.

This is YTN Oh In-seok.



Filmmaker: Jeong Chul-woo
Video editing: Lee Eun-kyung
Design: Lee Ga-eun