Anchor: South Korea's consumer price index surged by a nine-year high of two-point-six percent last month, led by increases in the prices of petroleum goods and agricultural and fisheries products.
Choi You Sun reports.

Report: Statistics Korea announced on Wednesday that the country's consumer price index rose two-point-six percent on-year in May, the fastest pace since April 2012.

The index jumped more than two percent for the second straight month, further expanding from April's two-point-three percent growth.

An official from the agency said the rise in consumer prices was led by petroleum goods and agricultural, livestock and fisheries products.

Prices of petroleum goods jumped 23-point-three percent, as global oil prices began to recover from the plummet of 2020. Prices of agricultural, livestock and fisheries goods increased 12-point-one percent due to a tight supply and the bird flu.

The service sector was also affected by rising prices, with prices of eating out jumping two-point-one percent. Rent went up one-point-three percent on-year, the biggest jump since November 2017.

The agency expected prices to stabilize in the second half, as the base effect subsides and price increases in agricultural goods and the global oil supply begin to slow down.

The government plans to further increase the import of eggs to 50 million or more this month, as prices of eggs rose by 45-point-four percent on-year. Additionally, the government will extend tariff exemptions on eggs and other related products until the end of the year.

Amid a build-up of inflationary pressure from the post-pandemic recovery, the Bank of Korea(BOK) is expected to face mounting pressure to gauge the timing of a rate hike from the current record low of point-five percent.
Choi You Sun, KBS World Radio News.