Seoul: South Korea's consumer prices rose at the slowest pace in five months in January, assisted by stable petroleum product prices, government data revealed on Tuesday. Consumer prices, a key gauge of inflation, increased 2 percent from a year earlier last month, according to the Ministry of Data and Statistics.

According to Yonhap News Agency, this marks the smallest on-year increase since August, when the figure was 1.7 percent. Inflation had remained above the Bank of Korea's 2 percent target for four consecutive months from September to December. The ministry attributed last month's slower growth mainly to petroleum product prices, which stayed largely unchanged from a year earlier.

"International crude oil prices based on Dubai crude fell from around US$80 per barrel in January of last year to the $60 range this year," said Lee Doo-won, a ministry official. South Korea, heavily reliant on energy imports, is particularly susceptible to external price shocks that often drive domestic inflation.

In December, petroleum product prices jumped 6.1 percent from a year earlier, marking the largest on-year gain since February, when prices increased 6.3 percent. Prices of agricultural, livestock, and fishery products rose 2.6 percent from a year earlier in January, marking the slowest growth since September. However, individual items like rice, apples, and mackerel saw sharp price increases, jumping 18.3 percent, 10.8 percent, and 11.7 percent on-year, respectively, according to the ministry.

Egg prices increased 6.8 percent from a year earlier in January due to a decline in output caused by the spread of highly pathogenic avian influenza. Industrial goods prices rose 1.7 percent, while electricity, gas, and water rates increased 0.2 percent. Processed food prices rose 2.8 percent in January, accelerating from a 2.5 percent increase the previous month, with instant noodle prices surging 8.2 percent on-year, marking the sharpest increase since August 2023.

"The Lunar New Year holiday could act as an upward pressure on agricultural, livestock, and fishery product prices this month, but some stabilization is expected through measures taken by relevant government agencies," Lee added. This year's holiday period runs from Feb. 16 to 18. Core inflation, which excludes volatile food and energy prices, rose 2.3 percent on-year in January, the ministry reported.