South Korea's consumer prices grew at the slowest pace in three months in November, indicating that the country managed to keep inflation under control, a government report showed Monday.
The country's consumer prices index rose 1.6 percent in November from a year earlier, compared with a 2.1 percent on-year gain in the previous month, according to the report by Statistics Korea. From a year earlier, it dropped 0.4 percent.
The core inflation, which excludes volatile oil and food prices, increased 1.3 percent on-year last month, which also represents a deceleration from a 1.5 percent increase in October.
The November figure marked the slowest growth since August when consumer prices rose 1.2 percent on-year. It is below the central bank's 2-4 percent inflation target band set for 2010-2012.
South Korea's inflation has been in a stable range over the past year after staying relatively high at around 4 percent throughout 2011 as the government strived to stabilize prices of food and other products that could have a direct impact on the livelihoods of ordinary people.
The report showed that prices of agricultural, livestock and fishery products rose 2.9 percent on-year in November. They, however, dropped 4.3 percent from a month earlier.
Factory product prices grew 1.5 percent from the same month a year earlier, while electricity, tap water and heating gas prices jumped 3.7 percent over the same period, suggesting that high utility bills remain a drag on consumer inflation, according to the report.
"Improved climate conditions, lower international oil prices led to decreases in farming and oil-related product costs, while personal and public fees seem to be stabilizing," the finance ministry said in a report analyzing the latest inflation figures.
The ministry cautioned that supply-side risks possibly caused by a cold spell and crude oil price fluctuations could drive up inflation but expected that consumer price growth will likely remain in the lower 2-percent rage for this year if the current "stable" situation continues until the end of this year. (Yonhap News)
