South Korea’s consumer price growth fell below 3% for the first time in nearly two years, marking the fifth consecutive month of deceleration, according to a Statistics Korea report. The drop to a 2.7% year-on-year increase in June from a 3.3% rise in May reflects declining fuel costs and a slower service sector growth rate. Inflation stayed above 2% — the central bank’s inflation target over the medium term — for the 27th straight month in June.

The central bank has kept the benchmark interest rate steady at 3.5% due to reduced inflationary pressure and increasing concerns about an economic slowdown. The ministry pledged to maintain price stability and closely monitor supply, prices, and weather conditions. The ministry also noted that among the 38 Organization for Economic Co-operation and Development (OECD) nations, only seven countries, including South Korea, have reported inflation rates below 3%.