South Korea's consumer prices rose 2.9% year on year in September, down from 3.1% in August, as cheaper farm produce partly offset high energy costs, Yonhap reported on October 2, citing data from the Ministry of Data and Statistics.

The reading brought inflation back below 3% after one month above that level. In July, prices rose 2.8%. Seoul imports the bulk of its energy, and prolonged geopolitical tension in the Middle East and around Hormuz helped keep petroleum product prices an estimated 14.8% higher than in September 2025. As a result, the government in Seoul said its fuel price cap had limited overall consumer price growth by an estimated 0.6 percentage point.

Diesel prices rose 20% and gasoline climbed 11.8%. Prices of industrial products as a whole increased 4.2%. Computer prices jumped 27.4% on higher semiconductor costs. Smartphone prices rose 8.3% after new Galaxy and iPhone models went on sale.

Prices of agricultural, livestock and fishery products fell 0.3%, after a 2.6% drop in August. Napa cabbage fell 9.2% and apples fell 15.2%. Domestically produced beef rose 6.6% and pumpkins rose 46.9%.

"Prices of fruits, such as apples and pears, decreased due to a good harvest and increased shipments ahead of the Chuseok holiday," said Lee Doo-won, a senior statistics official, Yonhap reported. "Government-led discount events also contributed to the decline."

The finance ministry also commented on food prices in a separate report. "Prices of agricultural products faced upward pressure in September, as the Chuseok holiday fell in October last year. But prices fell on-year for two straight months on the back of the government's discount programs and supply expansion," the ministry said.

Service sector prices rose 2.7%. Insurance premiums increased 13.4% and overseas package tour prices climbed 19.3%. Electricity, gas and water prices rose 0.4%. Core inflation, which excludes volatile food and energy prices, came in at 2.8%.

The Bank of Korea (BOK) said it expects consumer price growth to stay around 3% in October because prices of core items are rising. The central bank said service prices, including airfares, had increased, and electronics had become more expensive as chip prices rose.

"With uncertainties stemming from the situation in the Middle East remaining high, core inflation is expected to continue its upward trend due to the pass-through of cost shocks and growing demand-side pressures," the BOK said. "We will remain vigilant and closely monitor consumer price trends."