SEJONG, SOUTH KOREA / RankWire.AI / – South Korea’s consumer inflation accelerated to 3.1% in August from a year earlier, official data showed. The rate increased from 2.8% in July and moved back above 3%. Consumer prices also rose 0.2% from the previous month. The Ministry of Data and Statistics said the consumer price index reached 120.05, based on a 2020 benchmark of 100. Higher fuel and mobile service costs drove much of the annual increase.
Petroleum product prices climbed 14.2% from August 2025, adding pressure to household transportation costs. Diesel prices rose 19.6%, while gasoline prices increased 11.5%. Petroleum products contributed 0.54 percentage point to the annual inflation rate. Transportation prices as a whole advanced 7.2% from a year earlier. The government said nationwide fuel price caps lowered August inflation by about 0.3 percentage point, partly limiting the effect of higher energy costs.
Communication costs also increased sharply because of a low comparison base from last year. Mobile phone service charges jumped 26.7% from August 2025. SK Telecom had provided large one-month discounts following a data breach during the same period last year. The government estimated annual inflation would have been about 2.5% without the mobile service effect. Overall communication prices rose 16.6%, making the category one of the largest annual increases in the consumer basket.
Fuel and communication costs push prices higher
Underlying price pressures strengthened alongside the headline inflation rate. Core prices excluding food and energy rose 3.4% from a year earlier, the strongest increase since May 2023. Another measure that excludes agricultural products and petroleum advanced 3.1%. The living necessities price index, which tracks items commonly purchased by households, increased 3.2%. Within that measure, food prices rose 0.8%, while nonfood prices gained 4.8% from a year earlier.
Industrial goods and services also recorded broad annual increases in August. Industrial product prices rose 3.7%, and service prices advanced by the same rate. Electricity, gas and water costs increased 0.4% from a year earlier. Insurance premiums climbed 13.4%, while overseas package tour prices rose 14.9%. Restaurant and accommodation prices increased 2.8%. Recreation and culture costs advanced 4.9%, adding to the wider rise in service-related expenses.
Fresh food prices fall despite broader inflation increase
Agricultural, livestock and fishery product prices provided some relief during the month. The category fell 2.6% from a year earlier. Fresh food prices dropped 6.7%, led by declines in vegetables and fruit. Fresh vegetable prices fell 9.8%, while fresh fruit prices decreased 10%. Fresh fish and seafood prices moved in the opposite direction and rose 4.1%. Imported beef prices increased 6.2%, while domestic beef prices gained 3.3% over the same period.
The August figures showed inflation remained uneven across major household spending groups. Housing, water, electricity and fuel costs rose 1.9% from a year earlier. Food prices stayed comparatively restrained as fresh produce became cheaper, while energy, communication and several service categories posted larger gains. The 3.1% headline rate reflected those contrasting movements across the consumer basket. The latest data also showed that temporary mobile pricing effects and higher petroleum costs accounted for a significant portion of South Korea’s annual inflation increase.