South Korea's overall inflation rate in July fell from a 30-month high in June, partly due to government measures to curb fuel and electricity prices. However, price pressure persists, and the inflation rate is still above the central bank's 2% target. The Korea Statistics Agency said on Tuesday that the benchmark consumer price index rose 2.8% year on year in July, down from 3.2% in June. The latter is the fastest growth rate since December 2023. This reading is below the median forecast of 2.9% of the 11 economists surveyed by the media. Consumer prices fell 0.2% month-on-month in July, while the survey predicted a 0.1% decline. Consumer prices rose slightly by 0.1% month-on-month in June. The core CPI, which excludes volatile food and energy prices, rose 2.6% year on year and 0.4% month on month in July. Price increases for petroleum products have slowed as the government capped retail fuel prices and acted to lower electricity bills to curb inflation. Gasoline and diesel prices rose 13% and 22%, respectively, in July, down from 23% and 34% in June. On a month-on-month basis, these two prices fell by 6.2% and 6.7%, respectively. As oil prices soared due to the protracted conflict in the Middle East, which intensified inflationary pressure, the Bank of Korea raised interest rates in July. This was the first rate hike in more than three years. This move also made it join the ranks of other central banks that have tightened policies.

South Korea's overall inflation rate in July fell from a 30-month high in June, partly due to government measures to curb fuel and electricity prices. However, price pressure persists, and the inflation rate is still above the central bank's 2% target. The Korea Statistics Agency said on Tuesday that the benchmark consumer price index rose 2.8% year on year in July, down from 3.2% in June. The latter is the fastest growth rate since December 2023. This reading is below the median forecast of 2.9% of the 11 economists surveyed by the media. Consumer prices fell 0.2% month-on-month in July, while the survey predicted a 0.1% decline. Consumer prices rose slightly by 0.1% month-on-month in June. The core CPI, which excludes volatile food and energy prices, rose 2.6% year on year and 0.4% month on month in July. Price increases for petroleum products have slowed as the government capped retail fuel prices and acted to lower electricity bills to curb inflation. Gasoline and diesel prices rose 13% and 22%, respectively, in July, down from 23% and 34% in June. On a month-on-month basis, these two prices fell by 6.2% and 6.7%, respectively. As oil prices soared due to the protracted conflict in the Middle East, which intensified inflationary pressure, the Bank of Korea raised interest rates in July. This was the first rate hike in more than three years. This move also made it join the ranks of other central banks that have tightened policies.