Gasoline prices fell, while food and rent prices rose
Nov. 29, 2024
Global Korean Post
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The Consumer Price Index (CPI) rose 2.0% on a year-over-year basis in October, up from a 1.6% increase in September, as gasoline prices fell to a lesser extent in October (-4.0%) compared with September (-10.7%). The all-items CPI excluding gasoline rose 2.2% in October, the same growth rate as in August and September.
Prices for goods rose 0.1% on a year-over-year basis in October, following a 1.0% decline in September. In contrast, prices for services decelerated in October, rising 3.6%, the smallest yearly increase since January 2022. Over the past three years, prices for goods rose 10.2%, while prices for services increased 14.2%.
On a monthly basis, the CPI rose 0.4% in October following a 0.4% decline in September. On a seasonally adjusted monthly basis, the CPI increased 0.3%.
Year over year, gasoline prices fell to a lesser extent in October (-4.0%) compared with September (-10.7%). The smaller decline is partly attributed to a base-year effect, as prices fell 6.4% month over month in October 2023, stemming from lower refining margins and weaker global oil consumption.
On a monthly basis, prices for gasoline were up 0.7% in October, following a 7.1% decline in September.
Shelter price growth continued to ease in October, rising 4.8% year over year, compared with a 5.0% increase in September. Slower price growth in the mortgage interest cost index in October (+14.7%) compared with September (+16.7%) applied downward pressure on the shelter component. Mortgage interest costs have been decelerating on a year-over-year basis since September 2023, following a peak in August 2023 (+30.9%).
Similarly, prices for rent grew at a slower pace in October, increasing 7.3% on a year-over-year basis, following an 8.2% gain in September. Nova Scotia (+5.2%) and Manitoba (+6.5%) decelerated the most. Although slowing, prices for rent continue to increase and remain elevated. Compared with October 2021, prices for rent increased 21.6%.
Prices for food purchased from stores rose at a faster pace year over year in October (+2.7%) compared with September (+2.4%). This was the third consecutive month price growth for groceries outpaced headline inflation. Notable contributors to the acceleration were higher prices for other fresh vegetables (+7.3%) and preserved fruit and fruit preparations (+7.6%). The acceleration was moderated by downward pressure from fresh or frozen beef in October (+7.0% compared with +9.2% in September), among other food items.
