Consumer inflation slightly slowed in November to 1.6 percent on-year, dipping below 2 percent for the first time in three months.

On a monthly basis, the consumer price index dropped another 0.4 percent in November after shedding 0.1 percent in October as prices of vegetables and fruits stabilized after a jump in September due to a typhoon.

The Finance Ministry forecast an annual inflation in the low 2 percent range, provided that prices maintain the current stability. The slowing inflation cannot be attributed to the sluggish domestic demand as prices are a lagging indicator that changes usually after the economy as a whole does, the ministry said.

The global “agflation,” or inflation due to a rise in grain prices, doesn’t appear to have affected domestic prices yet.

By Kim So-hyun (sophie@heraldcorp.com)