South Korea’s consumer prices stayed around the inflation target of 2 percent for the fifth straight month in May due to strengthening in then supply end - mostly fresh food and petroleum-related - prices.

According to data released by Statistics Korea Thursday, the nation’s consumer price index (CPI) rose 2.0 percent last month from a year earlier. The annualized inflation rate hovered around 2 percent since January.

The jump in the headline index in recent months was largely blamed on surge in international oil prices. Petroleum-related prices edged up 8.9 percent on year to bump up the overall CPI by 0.37 percentage point. But the on-year growth pace has slowed down from the previous month with 11.7 percent.

Prices of agricultural, livestock and fishery products climbed 6.2 percent and hoisted up the headline index by 0.48 percent. It is the biggest year-on-year gain since 8.5 percent of January. Livestock prices soared 11.6 percent, the biggest annualized gain since 12.6 percent of June 2104.

Egg prices soared 67.9 percent last month from a year ago as the chicken farms still reeling from the worst-ever outbreak of bird flu that has wrecked the poultry industry. Poultry prices shot up 19.1 percent and pork prices 12.2 percent. Prices of fishery products rose 7.9 percent from a year-ago period.

The core inflation excluding oil and farm produces gained 1.4 percent in January from a year ago. The CPI without food and energy, the standard by the Organization for Economic Cooperation and Development (OECD), increased 1.5 percent.

The index for everyday expenses reflecting spending for staple food and utility fees accelerated 2.5 percent, faster than the headline inflation rate, suggesting bigger burden on monthly household budget. The fresh food index that includes vegetables, fruits and fish jumped 5.6 percent. Fruit prices soared 19.7 percent, the biggest year-on-year addition since 20.3 percent of April 2011. Squid prices shot up 59.0 percent, watermelon 17.1 percent, and grapes 10.9 percent.

City gas price rose 10.1 percent, reflecting the hike in imported oil prices.

Prices of fried chicken, Korean’s most popular delivery food choice rose 1.6 percent against a year-ago period as the country’s fried chicken restaurants all pushed up their menu prices.

By Kim Gyu-sik

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]