Fuel prices drive inflation in South Korea

Diesel prices in South Korea jumped 17 percent in March from a year earlier, while gasoline prices rose 8 percent, as higher global oil prices driven by conflict in the Middle East began to filter into consumer inflation.

Figures released April 2 by Statistics Korea showed petroleum product prices climbed 9.9 percent on-year in March, the fastest pace since October 2022, when prices rose 10.3 percent in the aftermath of the Russia-Ukraine war.

Lee Du-won, a senior official overseeing economic statistics at the agency, said diesel saw steeper gains due to its extensive use in transportation and military logistics. He added that global price increases were also more pronounced for diesel.

Despite the jump in fuel costs, overall consumer inflation remained contained at 2.2 percent, largely due to falling agricultural prices.

However, inflationary pressure is expected to intensify from April, as rising oil prices begin to ripple more widely across the economy, reinforcing concerns about oil-driven inflation.


세종=김수연 syeon@donga.com