The consumer price index (CPI) came in at 111.13 in May, up 3.3 percent from a year earlier, according to Statistics Korea. It was the lowest increase in 19 months since October 2021.
The headline inflation continued to slow down this year from 5.2 percent in January to 4.8 percent in February, 4.2 percent in March and 3.7 percent in April.
Last month's lower inflation was driven by a sharp fall in oil products price.
Oil products price tumbled 18.0 percent last month, continuing to slide for the fourth consecutive month. It marked the fastest decline in three years since May 2020.
The cheaper oil products dragged down the overall inflation by 0.99 percentage points.
Prices for gasoline, diesel and liquified petroleum gas (LPG) went down 16.5 percent, 24.0 percent and 13.1 percent, respectively.
Price for industrial products, including oil products, rose 1.8 percent in May from a year earlier on higher processed food price.
Processed food price picked up 7.3 percent in May after going up 7.9 percent in the previous month.
Price for agricultural, livestock and fishery products retreated 0.3 percent in May from a year earlier, after rising 1.0 percent in the prior month.
Agricultural and fishery products prices added in single digits, but livestock products price slipped 5.8 percent.
The country's headline inflation remained high, topping the Bank of Korea (BOK)'s mid-term target of 2 percent for 26 months in a row.
The still high inflation was led by surging public utility rates, such as electricity charge and heating bill.
Price for electricity, natural gas and tap water spiked 23.2 percent in May from a year earlier.
Electricity bill jumped 25.7 percent, while city gas and heating costs soared 25.9 percent and 30.9 percent, respectively.
Private services price, including eating-out cost, went up 5.6 percent in May after gaining 6.1 percent in the previous month. Public services price added 1.0 percent.
Expense for dining out climbed 6.9 percent, and the services price excluding the eating-out cost was up 4.7 percent.
Housing rent, including Jeonse and monthly rent, gained 0.6 percent in May, lower than an increase of 0.8 percent in the previous month.
Jeonse is South Korea's unique contract between two households where a landlord grants the two-year residential right to a tenant, who in turn lends a certain amount of money, or deposit, to the landlord.
The livelihood items index, which gauges price for daily necessities, increased 3.2 percent in May from a year earlier, after going up 3.7 percent in the prior month.
The fresh food index, which measures the price of fish, shellfish, fruit and vegetable, added 3.5 percent in May, after rising 3.1 percent in the prior month.
Demand-side inflationary pressure hovered high. The core consumer price index, which excludes volatile agricultural and oil products, advanced 4.3 percent in May, surpassing the headline inflation of 3.3 percent.
The OECD-method core price, excluding volatile energy and food costs, was up 3.9 percent last month.
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