Inflation rate in first 11 months stands at 2.4%

The inflation rate from January to November this year stood at 2.4 percent, up 0.1 percentage point from the previous announcement, according to the country’s newly adjusted consumer price index (CPI). Items, such as face mask, electric car, probiotics, and avocado, have been newly updated to the list of items used in calculating CPI.

Statistics Korea announced its newly adjusted CPI on Wednesday. The agency adjusts items and the weight of each item on a regular basis, reflecting changes in consumption pattern. The base year of the index and items had been the year 2015. The weight of each item had been calculated from the base year of 2017.

The items that are included in calculating CPI were 458, two fewer than before. Fourteen items have been newly added, including avocado, cherry, mango, face mask, dishwasher, dryer, probiotics, electric car and rice noodles. Items removed from the list include coal briquette, bidet, school uniform, necktie, high school tuition fees, and school meal fees.

As for the weight of each item, jeonse deposit and online content fees have been given more weight while cell phone bills and overseas group tours have been given less weight. The number of online transaction items also increased from 99 (21.5%) to 112 (24.5%).

Housing expenses for those who own a house, which are currently announced as a supplementary indicator, have not been included in the official CPI. It refers to the cost borne by people who own a house. Statistics Korea said whether to include housing expenses in CPI is a matter to be decided carefully through public debate.


Ae-Jin Ju jaj@donga.com