For the first time on record,... South Korea's consumer price growth dropped into the negative range in September.
But despite the worrying drop below zero percent growth,... the government is dismissing concerns over deflation.
Choi Si-young reports.
Statistics Korea revealed Tuesday that South Korea's overall consumer price growth recorded minus point-four percent in September compared to the same month last year,... something that has never happened since the agency began collecting related data in 1965.
Since January this year,... consumer inflation in South Korea has remained below one percent.
The agency said last month's fall is only a temporary blip due to government efforts to provide free education at all high schools and because more diseases are now covered by state health insurance.
Lower agricultural, fishery and oil prices also dragged on growth.
In particular, agricultural goods prices tumbled by around eight percent on-year due to the relatively stable weather in South Korea this summer.
Oil prices were down about six percent.
"Overall economic growth is sluggish, and there is weak demand. We have to take a close look at these two factors."
At an economic policy meeting on Tuesday, the finance ministry and the central bank insisted the weak inflation data seen in recent months isn't enough to trigger deflation concerns just yet.
Vice Finance Minister Kim Yong-beom pointed to South Korea's improving consumer sentiment index as a reason to be relatively optimistic for a turnaround before too long.
Choi Si-young, Arirang News.
