South Korea Inflation Rate Up to 8-Month High

South Korea's consumer prices increased by 1.3 percent year-on-year in October 2016, following a 1.2 percent growth in September and above market expectations of a 1.2 percent gain. It was the highest inflation rate since February this year, as cost of education rose further while prices of housing and transporation fell at a slower pace. On a monthly basis, consumer prices rose 0.1 percent, easing from a 0.6 percent growth in September but staying above expectations of 0.1 percent drop.
Statistics Korea l Joana Ferreira | joana.ferreira@tradingeconomics.com 10/31/2016 11:44:32 PM
Year-on-year, prices of education rose 1.6 percent, accelerating from 1.5 percent increase in September. Additional upward pressure came from: food and non-alcoholic beverages (+5 percent from +5.6 percent in September); and restaurants and hotels (+2.2 percent, the same as the previous month). Meanwhile, cost of housing and utilities declined by 0.4 percent (from -1.8 percent in September) and transport prices fell by 1.4 percent (from -1.8 percent).

Annual core inflation rate increased to 1.5 percent, the highest in three months.

On a monthly basis, consumer prices rose 0.1 percent, following 0.6 percent gain in September, but beating market expectations of 0.1 percent drop. Prices of housing and utilities jumped 2.5 percent while cost of food decreased 1.7 percent.

South Korea Inflation Rate Up to 8-Month High