Statistics Korea released its data and consumer price growth for June... which has remained below one percent for six months in a row.<br />Kim Da-mi explains why.<br />South Korea's consumer prices edged up point-seven-percent on-year in June,... and have been stuck below one percent for half a year now, ...mainly due to sluggish domestic demand and expanded welfare policies like free meals at school.<br />June's consumer price increase of point-seven-percent is well below the Bank of Korea's two percent target.<br />This is also the longest it has been below one percent since the February to November 2015 period.<br />The agency mentions sluggish growth in service prices as one of the main reasons for the low inflation rate.<br />The service price index last month edged up one-percent compared to the same period last year, pulled down by rents and public services which decreased by zero-point-two percent each.<br />The agency also pointed to the effect of lower oil prices after petroleum goods prices fell three-point-two percent on-year.<br />But consumers may feel that prices are a bit higher as agricultural goods prices in June went up almost two-percent... and livestock and fisheries product prices rose one-point-eight percent compared to the same month last year.<br />Statistics Korea expects the country's consumer price growth to remain below one-percent for the rest of the year... as service prices including electricity bills in July and August are likely to stay low.<br />KIM Da-mi, Arirang News.<br />
