South Korea's consumer prices grew less than 1 percent for the ninth month in a row in August, a government report showed Tuesday, as Asia's fourth-largest economy grapples with deflation concerns.
  

The country's consumer price index inched up 0.7 percent last month from a year earlier, the report by Statistics Korea showed.
  

The latest number remains unchanged from 0.7 percent on-year growth tallied for July.
  

"Weak international oil prices are exerting a downward pull on overall inflation numbers," said Kim Bo-kyoung, head of the statistical agency's prices statistics division. "The lowering of utility prices, such as gas, electricity and water, further contributed to the weak price gain."
  

Oil product prices plunged 18.2 percent on-year in August, while gas, electricity and water charges dropped 11.3 percent. Agrofisheries prices advanced 3.4 percent on-year last month.
  

The official said the agrofisheries sector increase was due to hot weather that affected vegetable prices.
  

The nation's core inflation, which excludes volatile oil and food prices, increased 2.1 percent from a year earlier, up marginally from a 2 percent gain reported for July.
  

August marks the eighth straight month that core inflation has grown more than 2 percent on-year, the statistical office said, adding that a core inflation number exceeding the 2 percent mark is a sign that people are spending.
  

In the service sector, prices gained 2 percent in August from the year before and were up 0.2 percent vis-a-vis July. The rise was attributed to higher rent costs, as well as gains in private and public service fees.
  

The report also showed the "living necessities" price index, which measures the cost of key products that people consume on a daily basis, contracting 0.1 percent on-year in the one-month period.
  

This marks the eighth time that the index has fallen into negative territory since the statistical agency started compiling such figures in 1995. Growth numbers have been falling generally since August 2014, with living necessities prices dropping to the minus side from January onward.
  

The finance ministry said supply-side factors such as low crude oil prices again affected last month's consumer inflation.
  

Despite weak overall prices, the country's expected inflation rate released by the Bank of Korea stood at 2.5 percent in August, down slightly from 2.6 percent the month before, it said. This rate is a barometer of future inflation as predicted by economic factors.
 

"The likelihood of more consumer demand is expected to push up inflation numbers in the coming months," it said.
  

The ministry noted that it is keeping close watch on agrofisheries, energy, education, rent, medical and communication-related market prices to prevent any sharp spikes that can directly impact people's lives. (Yonhap)