SEOUL, Nov. 5 (Xinhua) -- South Korea's consumer price inflation hovered below 2 percent for the second successive month in October due to a downturn in oil products prices, statistical office data showed Tuesday.
Consumer price index (CPI) rose 1.3 percent in October from a year earlier, after gaining 1.6 percent in the prior month, according to Statistics Korea.
It marked the slowest increase in three years and nine months since January 2021, staying below the central bank's mid-term inflation target of 2 percent.
The headline inflation has roughly been on the decline this year from 3.1 percent in February to 2.9 percent in April, 2.4 percent in June and 2.0 percent in August.
The Bank of Korea cut its benchmark interest rate by 25 basis points to 3.25 percent in October, logging the first rate decrease in nearly four and a half years since May 2020 on the back of lower inflation.
Oil products prices tumbled 10.9 percent in October from a year earlier after going down 7.6 percent in the previous month. It pulled down the overall headline inflation by 0.46 percentage points.
Prices for gasoline and diesel retreated 10.6 percent and 16.1 percent each, but liquefied petroleum gas prices picked up 9.9 percent.
Prices for industrial products, including oil products, lost 0.3 percent last month, dragging down consumer price inflation by 0.09 percentage points.
Processed food price advanced 1.7 percent in October on a yearly basis, higher than an increase of 1.6 percent in the previous month.
Prices for agricultural, livestock and fishery products grew 1.2 percent last month, lower than a growth of 2.3 percent in the prior month.
Agricultural product prices swelled 1.2 percent on a double-digit expansion in vegetable prices, which jumped 15.6 percent on bad weather conditions.
Prices for electricity, natural gas and tap water climbed 3.0 percent, pulling up the overall inflation by 0.12 percentage points.
Private service prices, including eating-out costs, expanded 2.9 percent last month, while public service prices increased 0.9 percent.
Housing rent, including Jeonse and monthly rent, inched up 0.5 percent in October from a year earlier.
Jeonse is South Korea's unique contract between two households where a landlord grants a two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.
The livelihood items index, which gauges the price for daily necessities, gained 1.2 percent in October on a yearly basis after picking up 1.5 percent in the previous month.
The fresh food index, which measures the price for fish, shellfish, fruit and vegetables, added 1.6 percent last month, lower than a growth of 3.4 percent in the prior month.
Demand-side inflationary pressure remained relatively low. The core consumer price index, which excludes volatile agricultural and oil products, edged up 1.7 percent in October. ■