Food and non-alcoholic beverages rose at a softer 0.8 percent (vs 2.0 percent in June) due to a 1.6 percent decline in the fresh food index, in particular fresh vegetables (-6.4 percent) and fresh fruits (-3.2 percent). Softer inflation was also recorded for restaurants and hotels (1.7 percent vs 1.8 percent) and alcoholic beverages and tobacco (0.8 percent vs 0.9 percent) while education inflation was flat at 1.1 percent and clothing prices showed no growth (vs -0.1 percent in June). In addition, declines were seen in prices of transport (-1.6 percent vs -1 percent), communication (-2.6 percent vs -2.8 percent), and recreation and culture (-0.2 percent vs -0.1 percent).
By contrast, inflation accelerated for housing, water, electricity, gas and other fuels (1.4 percent vs 1.2 percent); furnishings, household equipment & routine maintenance (2.1 percent vs 1.7 percent); health (1 percent vs 0.1 percent); and miscellaneous goods and services (1.8 percent vs 1.5 percent).
For 2019, the Bank of Korea targets inflation rate to be at 2 percent.
Core CPI, which excludes oil and agricultural products, advanced 1 percent year-on-year in July, following a 0.9 percent climb.
On a monthly basis, consumer prices fell 0.3 percent, after declining 0.2 percent in the previous month and compared to market forecasts of an unchanged reading.