Consumer prices jump 3.1% in May, highest in 26 months

Consumer prices rose to their highest level in two years and two months last month. In particular, petroleum prices hit their highest level in three years and 10 months, driven by the fallout from the war in the Middle East. Although the government is trying to contain inflation by injecting trillions of won in fiscal support, including a cap on petroleum product prices and fuel tax cuts, prices are expected to remain in the 3% range for the time being amid high oil prices in the $100-per-barrel range and a weak won in the 1,500-won range.
According to May consumer price data released by the National Data Office on the 2nd, the consumer price index stood at 119.92, with 2020 as the base year of 100, up 3.1% from a year earlier. That marked the sharpest increase in two years and two months, since March 2024, when inflation also rose 3.1%.
Consumer price inflation had fluctuated in the 1% to 2% range from April 2024. After the war in the Middle East sent global oil prices soaring, upward pressure on prices intensified. Inflation rose 2.2% in March and 2.6% in April this year, then jumped to the 3% range in May, the third month since the outbreak of the war, up 0.5 percentage point.
In particular, petroleum prices surged 24.2%, lifting overall inflation by nearly 1 percentage point. It was the biggest increase in three years and 10 months, since July 2022. Diesel prices rose 33.3%, while gasoline prices climbed 23.1%.
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hippo@fnnews.com Kim Chan-mi, Jeong Sang-gyun, Hong Ye-ji Reporter