South Korea Inflation Rate Accelerates in March

South Korean consumer prices rose in March of 2014 to an annual rate of 1.3 percent, up from 1 percent in February. The inflation rate rose for the first time in four months to a seven-month high, mainly due to higher childcare cost.
Statistics Korea | Joana Taborda | 4/1/2014 11:12:20 AM
Year-on-year, the main upward pressures came from prices of clothing and footwear (4.1 percent), miscellaneous goods and services (4 percent), housing, water, electricity and gas (3 percent) and furnishing, household equipment and routine maintenance (2 percent). Education prices increased 1.9 percent.

In contrast, transport cost fell 1.6 percent in the year to March; communication prices decreased 0.2 percent and cost of food and alcoholic beverages decreased 0.1 percent each. 

On a monthly basis, consumer prices slowed to 0.2 percent from 0.27 percent in February. The index for food and non-alcoholic beverages, education and miscellaneous goods and services increased 0.3 percent, 0.8 percent and 0.9 percent, respectively. 

The index for alcoholic beverages and tobacco and transport decreased 0.1 percent, respectively, while cost of housing, water, electricity, gas and other fuels, communication and restaurants and hotels remained unchanged in March.

Core inflation, which strips out the volatile cost of food and oil, accelerated to 2.1 percent on year, up from 1.7 percent in the previous month.

South Korea Inflation Rate Accelerates in March