South Korea Inflation Rate at 5-Month High


South Korean annual inflation rate was at 0.7 percent in June of 2015, up from 0.5 percent in May and matching market consensus. It is the highest inflation since January this year, as prices of food and non-alcoholic beverages and restaurants and hotels increased while the decline in cost of transport eased.

Year-on-year, prices increased for: food and non-alcoholic beverages (+2.7 percent in June from +2.2 percent in May); restaurants and hotels (+2.5 percent from +2.4 percent) and furnishing, household equipment & routine maintenance (+3.0 percent from +2.7 percent). In contrast, prices declined for: housing & utilities (-1.1 percent from -1.2 percent); transport (-7.7 percent from -8.8 percent), communication (-0.2 percent from -0.3 percent) and recreation and culture (-0.9 percent from -1.1 percent).

Prices moderated for clothing and footwear (+0.8 percent from +1.5 percent) and miscellaneous goods and services (+2.0 percent from +2.5 percent). Cost remained stable for health (+1.1 percent) and education (+1.7 percent).

On a monthly basis, consumer prices were flat in June, following a a 0.3 percent rise in May.

Annual core inflation, which strips out volatile energy and food prices, rose 2.0 percent from 2.1 percent in the previous month.

For 2015, the country's central bank expects inflation to be between 2.5 percent to 3.5 percent. 

South Korea Inflation Rate at 5-Month High


Statistics Korea l Rida Husna l rida@tradingeconomics.com
7/1/2015 12:12:47 PM