South Korea Inflation Eases to Lowest Since 2016


Consumer prices in South Korea increased by 1.0 percent year-on-year in January 2018, following a 1.5 percent rise in the previous month and compared to market expectations of 1.3 percent. It is the lowest inflation rate since August of 2016 as food cost declined for the first time in 2-1/2-years. Figures came well below the Bank of Korea's target of 2 percent.

Prices fell in January for: food & non-alcoholic beverages (-0.3 percent vs +0.2 percent in December), communications (-0.2 percent vs 0.7 percent), entertainment & culture (-1.3 percent vs -0.6 percent), and other goods & services (-0.2 percent vs 3.2 percent). Meantime, prices increased at a slower rate for: liquor & tobacco (1.1 percent vs 1.4 percent) and transport (1.6 percent vs 3.1 percent).

In contrast, prices climbed at the same rate for: clothing & footwear (1.3 percent), housing and utilities (1.5 percent), and health (0.4 percent).

Finally, prices increased at a faster rate for: household goods & services (3.3 percent vs 1.8 percent), education (1.1 percent vs 1.0 percent), and restaurants & lodging (2.8 percent vs 2.7 percent). 

Core CPI, which excludes oil and agricultural products, rose 1.1 percent, following a 1.5 percent increase in December.

On a monthly basis, consumer prices climbed 0.4 percent after rising 0.3 percent in the previous month and compared to expectations of a 0.7 percent increase. 

South Korea Inflation Eases to Lowest Since 2016


Mario | mario@tradingeconomics.com
2/1/2018 11:28:24 AM