South Korea Inflation Rate Slows to 1.5% in May


Consumer prices in South Korea increased by 1.5 percent year-on-year in May of 2018, following a 1.6 percent rise in the previous month. Figure came slightly below market consensus of 1.6 percent, mainly due to a slowdown in cost of housing & utilities and food & non-alcoholic beverages.

In May, prices rose at a softer pace for: food & non-alcoholic beverages (2.5 percent from 2.9 percent in April); clothing & footwear (0.9 percent from 2.1); housing, water, electricity, gas & other fuels (0.7 percent from  1.1 percent); health (0.4 percent from 0.5 percent); and miscellaneous goods & services (0.5 percent from 0.8 percent). Meantime, inflation was steady for alcoholic beverages & tobacco (0.2 percent); and restaurants & hotels (2.7 percent), while increased at a faster rate for: furnishing, household equipment & routine maintenance (3.1 percent from 3 percent); transport (2.6 percent from 1.6 percent); recreation & culture (1.2 percent from 0.3 percent); and education (1.4 percent from 1.3 percent). On the other hand, cost continued to decline for communication (-0.3 percent from -0.2 percent).

For 2018, the Bank of Korea sees inflation at 1.7 percent. 

Core CPI, which excludes oil and agricultural products, increased by 1.3 percent, after a 1.4 percent gain in a month earlier. 

On a monthly basis, consumer prices went up 0.1 percent, the same as in the previous month.

South Korea Inflation Rate Slows to 1.5% in May


Statistics Korea l Rida | rida@tradingeconomics.com
6/1/2018 3:11:31 AM