South Korea’s consumer prices rose 1.0 percent in March from a year earlier, with food prices picking up as more people sheltered at home because of the coronavirus.

The consumer price index (CPI) gained 1.0 percent in March to 105.54 from the same month a year ago, hovering at the 1-percent level for the third straight month, Statistics Korea reported Thursday. Against the previous month, it was down 0.2 percent.

Consumer prices rose 1.1 percent in February and 1.5 percent in January, slightly picking up pace after a year-long stay in zero territory.

The Bank of Korea last month slashed its interest rate to an all-time low of 0.75 percent, joining other major central banks in a coordinated emergency move to combat the economic shock from the coronavirus outbreak. It will decide whether to make another rate cut at its official rate-setting meeting on April 9.

Agricultural, livestock and fishery product prices jumped 3.2 percent in March, accelerating from the 0.3-percent rise in the previous month. Vegetable prices alone surged 16.5 percent on year, with livestock prices up 6.7 percent.

Prices of industrial goods fell 1.3 percent from a year earlier, easing from the 2-percent increase in the previous months. Petroleum prices climbed 6.6 percent on year but slipped 4.1 percent on month due to a sharp drop in global oil prices.

Service prices rose 0.5 percent on subdued demand, with dining costs up a mere 0.9 percent.

Passenger car prices fell 2.6 percent after the government extended tax breaks in vehicle purchases as part of efforts to stimulate spending.

The CPI without food and energy, the standard by the Organization for Economic Cooperation and Development (OECD), ticked up 0.4 percent in March, the lowest since December 1999 in the wake of the Asian financial crisis. Core inflation, excluding volatile agricultural product and oil prices, was up 0.7 percent from February’s 0.6 percent.

By Kim Hyo-jin

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