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Consumer prices rise 2.2% in March on surging oil prices

Published: 02 Apr. 2026, 09:03 Updated: 02 Apr. 2026, 14:46

Oil and gas prices are shown at a gas station in Seoul on March 23. [YONHAP]

Korea's consumer prices rose 2.2 percent in March from a year earlier, mainly due to a hike in global oil prices caused by prolonged tensions in the Middle East, government data showed Thursday.

The reading, which hovers above the government's 2 percent inflation target, marks the steepest on-year increase since December, when inflation stood at 2.3 percent, according to the Ministry of Data and Statistics.

The latest rise was driven by a surge in the price of petroleum products, which jumped 9.9 percent from a year earlier, marking the sharpest increase since October 2022, when the price spiked 10.3 percent on year amid the Russia-Ukraine war.

Notably, diesel and gasoline prices jumped 17 percent and 8 percent on year, respectively.

Global oil prices have risen sharply as the Strait of Hormuz has effectively been closed since U.S.-Israeli strikes on Iran in late February, disrupting global oil supplies. Korea relies heavily on imports for energy.

Prices of agricultural, livestock and fishery products edged down 0.6 percent, mainly due to a sharp drop in agricultural product prices, which fell 5.6 percent on year. Prices of livestock and fishery products rose 6.2 percent and 4.4 percent, respectively.

Service prices increased 2.4 percent from a year earlier, driven by higher insurance costs.

Core inflation, which excludes volatile food and energy prices, rose 2.2 percent on year last month, the ministry said.

The government said the increase in consumer prices despite rising fuel prices was partly tempered by a fuel price cap system, pledging to continue taking all out efforts to stabilize prices amid ongoing volatility.

Under the system, adopted in March, the government sets maximum prices for fuel products supplied by refiners to gas stations and distributors every two weeks, reflecting changes in global oil prices.

"Despite rising petroleum prices due to the Middle East conflict and higher global oil prices, consumer prices rose only 2.2 percent thanks to falling agricultural prices and the price cap system," said First Vice Finance Minister Lee Hyoung-il.

Lee made the remarks while presiding over the inaugural meeting of a government task force aimed at managing price pressures amid the Middle East conflict.

The vice finance minister noted that global oil price volatility continues to pose upward pressure, calling for coordinated efforts across all agencies to monitor prices and ensure a stable supply of necessities.

Yonhap