Hanoi: Consumer prices in the Republic of Korea grew by less than 2 percent in August, marking the slowest pace of growth in nine months, primarily due to a notable drop in telecommunication fees, data revealed.

According to Lao News Agency, consumer prices, a key measure of inflation, increased by 1.7 percent from a year earlier in August, based on data from Statistics Korea. The inflation rate had surpassed the Bank of Korea’s 2 percent target for four consecutive months through April, before slowing to 1.9 percent in May. It then rose again, exceeding 2 percent in both June and July.

This figure represents the slowest growth since November 2024, when the comparative figure increased by 1.5 percent on-year. The agency attributed last month’s deceleration to a 21 percent on-year decrease in mobile phone fees. Following a data breach in April, SK Telecom, the country’s largest wireless carrier, provided a 50 percent discount on August bills for its more than 20 million users. Consequently, public service fees, including telecom charges, decreased by 3.6 percent on-year, reducing overall inflation by 0.42 percentage point.

The agency noted that if mobile fees had remained at the July level, August’s growth would have been 2.3 percent, marking the fastest price growth since July 2024. Prices of industrial goods increased by 1.7 percent on-year in August. Notably, prices of processed foods rose by 4.2 percent on-year, continuing an upward trend.

Among industrial goods, bread and coffee prices increased by 6.5 percent and 14.6 percent on-year, respectively. Prices of agricultural, livestock, and fisheries products rose by 4.8 percent from a year earlier, adding 0.37 percentage point to August inflation. This increase is the largest since July 2024, when the figure rose by 5.5 percent. Fisheries products, in particular, saw a 7.5 percent on-year increase, the fastest growth since February 2023.

Lee Doo-won, an official at Statistics Korea, stated, “Seafood prices were affected by reduced inventory levels, and the price of livestock products was driven up by a decline in the number of animals slaughtered.” He further noted that vegetable shipments had also decreased due to recent heat waves. The service sector maintained its upward trajectory, with a 1.3 percent on-year gain. Core inflation, excluding volatile food and energy prices, rose by 1.3 percent in August, also slowing from July’s 2 percent growth.