Seoul: South Korea's consumer prices increased by 3.1% in August compared to the same period last year, driven by elevated oil prices and higher mobile service subscription charges. The rise in mobile service costs is attributed to a low base effect following large-scale discounts offered last year due to a hacking incident.

According to Oman News Agency, which cited data from the Ministry of Statistics, the increase in consumer prices was influenced by a 14.2% year-on-year rise in oil prices in August. Although the growth rate of oil prices slowed from the 15.5% observed in July, diesel prices saw a significant increase of 19.6%, while gasoline prices also rose by 11.5%.

Mobile phone service charges surged by 26.7% from the previous year, reflecting the low base established in the aftermath of significant discounts provided by SK Telecom Co. following a data breach incident.

The data highlighted that core inflation, which omits volatile food and energy prices, rose by 3.4% in August on a year-on-year basis. This marks the highest level since May 2023, when core inflation reached 3.8%. The report also noted South Korea's dependence on energy imports to meet its domestic needs.