S.Korea's consumer price growth accelerates on higher farm goods, oil prices

South Korea's consumer prices rose at a faster pace in July due to higher prices of farm goods and oil products, a government report showed Thursday.

Consumer prices increased 1.4 percent in July from a year earlier after gaining 1 percent in the previous month, according to Statistics Korea.

From a month before, the consumer prices advanced 0.2 percent in July, the first rise in five months.

The on-year price growth stayed at a 1 percent range for the ninth consecutive month, but the headline inflation accelerated due to higher prices of agricultural and petroleum products.

Oil product prices turned upward amid higher global oil prices caused by political unrest in the Mideast. Crude oil prices averaged 103 U.S. dollars a barrel in July, up from an average of 100 dollars in the prior month.

Vegetable prices jumped in July due to recent heavy rainfall. Heavy rain battered the central part of the Korean Peninsula, flooding farmlands and reducing crops.

The so-called "livelihood price" index, which reflects the costs of key daily necessities, climbed 0.9 percent in July from a year earlier after gaining 0.3 percent in the prior month.

Fresh food prices, which include vegetable and fruit, rose 0.4 percent last month, up from a 2.2 percent fall in the previous month.

Core consumer prices, which exclude agricultural and oil products, increased 1.5 percent in July from a year earlier after gaining 1.4 percent in June.

The ministry cautioned that there remained risk factors such as possible price hikes in farm goods and crude oil, saying that it will closely monitor those risk factors.

By item, agricultural product prices rose 0.2 percent in July from a month earlier. Prices for fruit and cereal fell 0.8 percent and 0.2 percent each, but vegetable prices advanced 2.2 percent due to the heavy downpours.

Livestock prices jumped 4 percent on-month in July due to seasonal demand. Pork and chicken prices soared 7.8 percent and 7 percent each last month.

Industrial goods prices were unchanged in July from a month earlier. Oil product prices gained 1.3 percent in July after falling 0.1 percent in the prior month, but processed food prices remained steady on an on-month basis due to the continued price fall in some foodstuffs.

Private service prices gained 0.3 percent on-month in July, turning upward due to a rise in travel-related service fees during the summer vacation season.

Prices for electricity, tap water and gas rose 0.3 percent in July from the prior month, but public service prices fell 0.3 percent over the same period.

Housing rents gained 0.2 percent on-month in July, unchanged from the figure for the prior month.