South Korea Inflation Steady in June


South Korean annual inflation came in at 1.70 percent in June of 2014, steady compared with the same figure in May. Prices of clothing and footwear rose the most while cost of transportation and alcoholic beverages and tobacco decreased slightly.

In June of 2014, all expenditure categories saw higher prices except for alcoholic beverages and tobacco as well as transportation. Clothing and footwear prices rose 4.6 percent yoy from 4.2 percent in May. Costs of food and non-alcoholic beverages increased 1.5 percent from 0.8 percent in the previous month. Higher prices of utilities, including housing, water and electricity also rose 4.6 percent after easing to 3 percent in May. While education costs and furnishing, household equipment and routine maintenance up 1.7 percent respectively, prices of restaurant and hotel also up 1.2 percent.

Falling prices only happened to alcoholic beverages and tobacco as well as transportation for 0.2 percent and 0.1 percent respectively.

On a month-on-month basis, inflation decreased 0.1 percent in June of 2014, compared with a 1.7 percent gain in the previous month. Inflationary upward pressures mostly came from clothing and footwear (0.6 percent from 0.5 percent). Higher prices also saw on housing, water, electricity, gas and other fuels as well as restaurants and hotels, which increased 0.1 percent respectively in June. Price of miscellaneous goods and services also 0.1 percent higher in the month.

The core inflation rate, which excludes volatile oil and agricultural products rose 2.1 percent yoy,  slighly lower than 2.2 percent increase in May.

South Korea Inflation Steady in June


Statistics Korea l Rida l rida@tradingeconomics.com
7/1/2014 9:05:33 AM