Seoul: South Korea's consumer prices experienced a 2 percent rise in February compared to the previous year, remaining consistent with January's growth and aligning precisely with the nation's inflation target, as revealed by government data on Friday. This marks the smallest annual increase in consumer prices since August, when the figure was 1.7 percent, according to the Ministry of Data and Statistics.

According to Yonhap News Agency, February's inflation rate marks the second month in a row that it has met the Bank of Korea's 2 percent target. This also represents the sixth consecutive month in which the growth rate has stayed at or above this benchmark. A notable change was observed in petroleum prices, which decreased by 2.4 percent on-year, the first decline in six months, although this data does not take into account the recent oil price surge due to the Iran crisis.

Prices for agricultural, livestock, and fishery products increased by 1.7 percent, albeit at a slower rate than the previous month, primarily due to a significant reduction in vegetable prices. However, livestock products saw a 6 percent on-year increase, the highest growth in half a year. The Ministry highlighted that the Fair Trade Commission's investigation into price-fixing allegations among flour and sugar producers contributed to the limited price growth of processed food products. Additionally, discount events during the Lunar New Year holiday in February played a role in moderating food price increases.

Service prices rose by 2.6 percent, marking the most substantial annual gain since January 2024, driven by increased costs for private services related to traveling and accommodation during the traditional holiday period. Meanwhile, industrial goods prices saw a 1.2 percent increase, and electricity, gas, and water rates experienced a modest 0.2 percent rise. Core inflation, which excludes the volatile food and energy sectors, climbed by 2.3 percent on-year last month, as reported by the ministry.