South Korea’s inflation would have been about 2.5% without the spike in mobile bills
Consumer prices in South Korea rose by 3.1% year on year in August, but excluding the spike in the cost of mobile services, the figure is estimated at about 2.5%. Kang Gi-ryeong, a senior official at the finance ministry, said this during a government meeting, Korea Herald reports.
The impact of last year’s discounts
According to the official, mobile bills were temporarily given a 50% discount in August last year, creating a low comparison base. In August this year, the cost of mobile services rose by 26.7% compared with the same month last year.
The discounts were offered by operator SK Telecom after a large-scale data breach that affected more than 20 million subscribers. The company is the country’s largest mobile operator.
More current news is available on the UA.News Telegram channel Telegram.
Containing fuel prices
The government also noted that the current fuel price cap system restrained consumer price growth by 0.5 percentage points. Without this mechanism, the August inflation rate could have reached 3.6%.
Kang Gi-ryeong said that price growth is expected to slow in September compared with August. At the same time, he pointed to upside risks, including uncertainty in the Middle East and climate factors. The government plans to implement measures to stabilize living conditions ahead of the Chuseok holiday.
