South Korea's inflation nears 14-yr high in May

Inflation growth in South Korea reached a high of nearly 14 years in May with high energy and food costs amid the ongoing war between Russia and Ukraine and economic recovery, official data revealed on Friday.

Yonhap News Agency quoted data released by the state-run Statistics Korea and reported that consumer prices rose 5.4% year-on-year last month, accelerating from a 4.8% rise in April.

This was the largest year-over-year increase since August 2008, when consumer prices rose 5.6%. Inflation also exceeded 5% for the first time since it rose 5.1% in September 2008. Consumer prices exceeded the central bank's medium-term inflation target of 2% in May for 14 consecutive months.

The economic recovery and the lifting of major Covid-19 restrictions have pushed up prices for personal services and restaurants. Prices for personal services rose 5.1% year-on-year, the fastest rise in December 2008. Restaurant costs rose 7.4%. Agricultural, livestock, and fisheries products prices rose 4.2% year on year accelerating from a 1.9% rise in April.

Core inflation, which excludes volatile food and oil costs, superior 3.4% on year last month, the highest recorded since February 2009. Another gauge of middle inflation, which excludes costs of agricultural and petroleum products, jumped 4.1% the quickest climb since April 2009.