The consumer price index (CPI) stood at 111.20 in July, up 2.3 percent from the same month of last year, according to Statistics Korea. It was the lowest increase in 25 months since June 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, 3.7 percent in April, 3.3 percent in May and 2.7 percent in June.
Last month's slower inflation was driven by a sharp fall in oil products prices.
Oil products prices tumbled 25.9 percent in July from a year earlier, marking the fastest fall since relevant data began to be compiled in 1985. It kept a downward trend for the sixth consecutive month.
The cheaper oil products dragged down the overall inflation by 1.49 percentage points.
Prices for gasoline, diesel and liquified petroleum gas (LPG) diminished 22.8 percent, 33.4 percent and 17.9 percent each.
The price for industrial products, including oil products, was unchanged in July on a yearly basis after rising 0.2 percent in the previous month.
Processed food prices picked up 6.8 percent in July after going up 7.5 percent in the prior month.
Prices for electricity, natural gas and tap water spiked 21.1 percent in July from a year earlier, but it has logged the lowest in 10 months since September last year.
Prices for agricultural, livestock and fishery products declined 0.5 percent in July from a year earlier, after gaining 0.2 percent in the previous month.
Private service prices, including eating-out costs, advanced 4.7 percent in July from a year earlier after increasing 5.0 percent in the prior month. Public service prices added 1.2 percent.
Housing rent, including Jeonse and monthly rent, gained 0.3 percent in July, lower than an increase of 0.5 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 the price for daily necessities, increased 1.8 percent in July from a year earlier, falling below 2 percent in 29 months since February 2021.
The fresh food index, which measures the price of fish, shellfish, fruit and vegetable, added 1.3 percent in July, after rising 3.7 percent in the prior month.
The country's headline inflation still topped the Bank of Korea (BOK)'s mid-term target of 2 percent for 28 months in a row.
The BOK forecast that consumer price inflation would rebound to around 3 percent by the end of this year.
Demand-side inflationary pressure hovered high. The core consumer price index, which excludes volatile agricultural and oil products, advanced 3.9 percent in July, surpassing the headline inflation of 2.3 percent.
The OECD-method core price, excluding volatile energy and food costs, was up 3.3 percent last month.
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