South Korea Inflation Up to 19-Month High


South Korean annual inflation accelerated for the third straight month to 1.70 percent in May of 2014 from 1.50 percent in April, driven by higher food prices.

In May of 2014, prices accelerated for food and non-alcoholic beverages (0.8 percent yoy from -0.3 percent in April), furnishings, household equipment and routine maintenance (2.8 percent from 1.9 percent), transport (0.3 percent from -0.9 percent), recreation and culture (1.4 percent from 1.2 percent).

In contrast, prices fell for alcoholic beverages and tobacco (-0.2 percent from 0.0 percent), and slowed for clothing and footwear (4.2 percent from 5.1 percent), housing, water, electricity, gas and other fuels (3.0 percent from 3.1 percent), health (0.3 percent from 0.6 percent), and communication (0.0 percent from 0.2 percent).

On a month-on-month basis, inflation increased 0.2 percent in May of 2014, compared with a 0.1 percent increase in the previous month. Inflationary upward pressures came from clothing and footwear (0.5 percent from 0.0 percent), furnishings, household equipment and routine maintenance (0.8 percent from -0.4 percent), restaurants and hotels (0.2 percent from 0.1 percent). The index for alcoholic beverages and tobacco and transport fell to 0.1 percent from 0.0 in the previous month, and the index for food and non-alcoholic beverages rose to 0.0 percent from -0.1 percent.

The core inflation rate, which excludes volatile oil and agricultural products rose 2.2 percent yoy, slowing from a 2.3 percent increase in April.

South Korea Inflation Up to 19-Month High


Statistics Korea | Isabel Felino | isabel.felino@tradingeconomics.com
6/3/2014 11:34:58 AM