South Korea Inflation Rate Steady at 1% in April


Consumer prices in South Korea rose 1.0 percent year-on-year in April of 2016, the same pace as in March and matching market expectations. Prices of food rose at a faster pace while cost of housing & utilities and transport fell further.

Year-on-year, prices increased for: food and non-alcoholic beverages (+3.4 percent in April from +3.1 percent in March), clothing & footwear (+2.3 percent from +1.8 percent); furnishing, household equipment & routine maintenance (+1.8 percent from +1.7 percent), recreation and culture (+0.6 percent from +1.6 percent), education (+1.6 percent from +1.7 percent), restaurants and hotels (+2.4 percent from +2.5 percent) and miscellaneous goods and services (+1.4 percent from +1.2 percent). In contrast, cost declined for: housing, water, electricity, gas and other fuels (-0.2 percent from -0.1 percent) and transport (-3.0 percent from -3.3 percent). While cost remained unchanged for communication, prices were steady for alcoholic beverages and tobacco (+0.7 percent) and health (+1.1 percent). 

By sector, prices of fresh food recorded the highest increase (+9.6 percent year-on-year), followed by agricultural, livestock and fisheries products (+ 5.5 percent) and service sector (+2.2 percent). In contrast, cost of industrial goods fell by 0.6 percent. 

Core inflation rate was recorded at 1.8 percent from a year earlier in April, as compared to 1.7 percent in the previous month.

On a monthly basis,  consumer prices rose 0.1 percent, following a 0.3 percent drop in March and in line with market consensus.

South Korea Inflation Rate Steady at 1% in April


Rida | rida@tradingeconomics.com
5/3/2016 2:27:48 AM