South Korea Inflation Rate Steady in August


South Korean annual inflation rate was at 0.7 percent in August of 2015, the same pace as in the previous month and matching market consensus. A decline in cost of transport and housing & utilities and a slowdown in cost of food and non-alcoholic beverages offset an increase in cost of clothing, health and miscellaneous goods and services.

Year-on-year, prices declined for: housing, water, electricity, gas and other fuels (-1.6 percent in August from -1.7 percent in July), transport (-6.5 percent from -6.3 percent) and recreation and culture (-1.7 percent from -0.6 percent). In contrast, prices increased for: clothing and footwear (+1.1 percent from +1.0 percent); furnishing, household equipment & routine maintenance (+3.0 percent from +2.7 percent); health (+1.5 percent from +1.2 percent), education (+1.8 percent from +1.7 percent) and miscellaneous goods and services (+2.5 percent from +2.0 percent).

Prices moderated for food and non-alcoholic beverages (+2.2 percent from +2.3 percent). Cost remained stable for: communication (-0.2 percent),  education (+1.7 percent) and restaurants and hotels (+2.4 percent).

On a monthly basis, consumer prices rose 0.2 percent in August, remaining steady from the preceding month.

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

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

South Korea Inflation Rate Steady in August


Statistics Korea l Rida Husna l rida@tradingeconomics.com
9/1/2015 3:05:46 AM