South Korea’s consumer price growth remained below 2 percent for the 21st consecutive month in July, data showed Sunday, sparking fears that it could plunge the country into a Japanese-style economic stagnation.

Consumer price growth in Asia’s fourth-largest economy has hovered in the 1-2 percent range since November 2012 when it posted 1.6 percent, according to data by Statistics Korea.

The low inflation is attributable to a severe slump in domestic demand, economic experts said.

Given the situation, the government revised down its estimate for this year’s average inflation to 1.8 percent in the second half from 2.3 percent early this year.

Inflation should usually stay in the 2-3 percent range to ensure economic growth while keeping prices stable, experts say. A negative inflation rate would accompany a decline in property prices, affecting the wider economy. (Yonhap)