SEOUL, Oct. 2 (Xinhua) -- South Korea's consumer price inflation rose above 2 percent because of higher food prices ahead of the Chuseok holiday, the South Korean version of Thanksgiving Day, statistical office data showed Thursday.
Consumer price index (CPI) rose 2.1 percent in September from a year earlier, after going up 1.7 percent in the previous month, according to the Ministry of Data and Statistics.
The headline inflation stayed around the central bank's mid-term inflation target of 2 percent in recent months.
The faster inflation was attributed to higher prices for livestock and fishery products, as well as processed food, ahead of the Chuseok holiday that falls in early October this year.
Price for agricultural, livestock and fishery products expanded 1.9 percent last month, lower than an increase of 4.8 percent in the prior month.
Price for industrial products, including oil products and processed food, swelled 2.2 percent in September compared to the same month of last year, higher than an expansion of 1.7 percent in August.
Oil product prices were up 2.3 percent last month after falling 1.2 percent in the previous month. The prices for gasoline and diesel increased 2.0 percent and 4.6 percent, each.
Processed food prices spiked 4.2 percent in September, raising the overall inflation by 0.36 percentage points.
Price for electricity, natural gas and tap water inched up 0.3 percent in September on a yearly basis.
City gas charges, heating costs and waterworks fees went up in single digits, but the electricity bill was down 0.4 percent.
Service price gained 2.2 percent last month, lifting the inflation by 1.21 percentage points. Public service price was up 1.2 percent.
Private service price, including eating-out cost, increased 2.9 percent last month, lower than the growth of 3.1 percent in the previous month.
Housing rent, including Jeonse and monthly rent, was up 0.8 percent in September from a year earlier.
Jeonse is South Korea's unique contract between two households where a landlord grants the 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 price for daily necessities, rose 2.5 percent in September on a yearly basis, but the fresh food index, which measures price for fish, shellfish, fruit and vegetable, dipped 2.5 percent.
Demand-side inflationary pressure became strong. Core consumer price index, which excludes volatile agricultural and oil products, appreciated 2.4 percent last month, higher than a rise of 1.9 percent in the previous month.
The OECD-method core price, excluding volatile energy and food costs, gained 2.0 percent in the cited month.
Expectations remained high for the Bank of Korea (BOK)'s additional policy rate cut later this year.
The BOK cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year. ■