South Korea's headline inflation escapes from zero range

South Korea's headline inflation escaped in november from a zero percent range for the first time in 12 months due to a weak effect from cheaper oil that started from the fourth quarter of last year, a government report showed on Tuesday.

Consumer prices rose one percent in November from a year earlier, marking the first rebound to the one percent level in 12 months, Xinhua quoted the Statistics Korea as saying.

The consumer price inflation stayed at the zero percent range for 11 months in a row since December 2014 amid the low global oil prices.

Dubai crude, South Korea's benchmark, declined to about $60 in December last year after moving at a range of $100 per barrel in the third quarter of last year. The Dubai crude moved around $40 a barrel this year.

The already lowered crude oil prices, which started the downward trend in the fourth quarter of last year, began to have less impact on consumer prices from the fourth quarter of this year.

A hike in intra-city bus fare and rising home rents boosted services prices, which advanced 2.2 percent last month on a yearly basis. It raised the consumer price inflation by 1.23 percentage points in November.

Core inflation, which excludes volatile agricultural and oil products, climbed 2.4 percent in November from a year earlier, staying above two percent for 11 straight months.

The OECD-method core inflation, excluding volatile food and energy prices, gained 2.7 percent last month on a yearly basis. It marked the highest monthly gain in about four years.

The so-called livelihood prices, which reflect daily necessities, inched up 0.1 percent in November, but fresh food prices such as fruits and vegetables went up three percent on a yearly basis.

Prices for agricultural, livestock and fishery products advanced 1.7 percent last month, led by a 98.9 percent jump in onion prices. Garlic and beef prices jumped 35 percent and 12 percent each, contributing to higher farm goods prices.

Durable goods prices rose two percent amid recovering domestic demand, and clothing prices posted an increase in November due to strong demand for overcoats during the winter season.

Oil product prices kept a downward trend, but the falling pace slowed down amid slowing fall in crude oil prices. Gasoline and diesel prices slumped 14.9 percent and 19.5 percent each last month on a yearly basis.

Prices for electricity, tap water and natural gas tumbled 7.1 percent, but home rents rose 2.2 percent last month.

Public service prices gained two percent in November on the back of higher charges in bus, subway and sewerage services.

Private services price added 2.1 percent due to higher apartment management fees, higher meal costs in cafeteria and higher private school tuition fees for middle school students.