South Korea Inflation Rate Steady in July


South Korean annual inflation rate was at 0.7 percent in July of 2015, the same pace as in the previous month and matching market consensus. A further decline in cost of housing and utilities and a slowdown in prices of food and non-alcoholic beverages offset an increase in cost of clothing and a slower drop in cost of transport.

Year-on-year, prices declined for: housing, water, electricity, gas and other fuels (-1.7 percent from -1.1 percent), transport (-6.3 percent from -7.7 percent) and recreation and culture (-0.6 percent from -0.9 percent). In contrast, prices increased for: clothing and footwear (+1.0 percent in July from +0.8 percent in June) and health (+1.2 percent from +1.1 percent).
 
Prices moderated for: food and non-alcoholic beverages (+2.3 percent from +2.7 percent); furnishing, household equipment & routine maintenance (+2.7 percent from +3.0 percent) and restaurants and hotels (+2.4 percent from +2.5 percent). Cost remained stable for: communication (-0.2 percent),  education (+1.7 percent) and  miscellaneous goods and services (+2.0 percent).
 
On a monthly basis, consumer prices rose 0.2 percent in July  from remaining flat in the preceding month.
 
Annual core inflation, which strips out volatile energy and food prices, rose 2.0 percent, unchanged from 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 Steady in July


Statistics Korea l Rida Husna l rida@tradingeconomics.com
8/4/2015 4:15:08 AM