(LEAD) S. Korea's consumer prices gain 1 pct in April

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SEJONG, May 3 (Yonhap) -- South Korea's consumer prices grew by more than 1 percent for the third consecutive month in April, government data showed Tuesday.

The country's consumer price index rose 1 percent last month from a year earlier, according to the data compiled by Statistics Korea.

It is the first time in 17 months that the index has stayed above the 1 percent level for three straight months.

The figure had remained less than 1 percent throughout last year except in November and December.

Core inflation, which excludes volatile oil and food prices, increased 1.9 percent compared with last year, the same increase as a month ago.

Statistics Korea said the rising prices of agricultural products, including Chinese cabbages, onions and garlic, contributed to the overall hike in April.

Prices of agricultural products jumped 6.5 percent on-year in April and those of meat gained 4.8 percent on-year. In particular, prices of fresh food, including vegetables and fruits, jumped 9.6 percent last month from a year earlier.

Service bills, including public transportation fees, rent and housing bills, rose 2.2 percent on-year to lend support to the overall uptick.

"The nationwide supply of onions and garlic has remained low for months, pushing up the index," said Woo Young-jae, director of the agency's price statistics division.

"The prices will stabilize in the coming months as the weather is getting warmer and the agricultural community is increasing its output of farm products."

Prices of petroleum products, however, sank 11.8 percent on-year, dragging down the index by 0.49 percentage point, amid a global low oil price trend.

He said it is too early to say the price index has got on a recovery track as the prices are easily affected by volatile factors like foodstuff and oil prices.

"We have to check the numbers for a while longer, as the index can go below the 1 percent mark even if it loses 0.1 percentage point," said Woo. "But when we look into the core inflation, it's remained nearly flat for months. We can say it is getting steadier."

In a recent report, the Bank of Korea said South Korea currently faces no deflation risks and its consumer prices are projected to move upward to reach the target of 2 percent in the second half of the year, citing an index measured by the International Monetary Fund.

brk@yna.co.kr
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