South Korea Inflation Rate Rises to 13-Month High of 2%
South Korea's annual inflation inched higher to 2 percent in October of 2018 from 1.9 percent in the previous three months and above market expectations of 1.7 percent. It was the highest inflation rate since September 2017, driven by faster rises in cost of food, housing and transport.
11/1/2018 9:53:58 AM
Year-on-year, prices advanced faster for: food and non-alcoholic beverages (5.6 percent vs 5.2 percent in September); alcoholic beverages and tobacco (0.1 percent, compared to a flat reading in the prior month); housing and utilities (0.8 percent vs 0.7 percent); transport (4.6 percent from 4.1 percent), while inflation was steady for: clothing and footwear (0.6 percent); education (at 1.5 percent); and restaurant and hotels (at 2.4 percent). In addition, cost fell less for health (-0.4 percent vs -0.5 percent). On the other hand, cost went up at a softer rate for: furnishing, household equipment & routine maintenance (2.3 percent vs 2.4 percent); recreation and culture (0.5 percent vs 1.9 percent); and miscellaneous goods and services (0.5 percent vs 0.9 percent). At the same time, cost of communication dropped further 1.8 percent, after a 1.7 percent fall in a month earlier.
Core CPI, which excludes oil and agricultural products, increased by 1.1 percent, compared to a 1.2 percent rise in September.
For 2018, the Bank of Korea sees inflation at 1.7 percent.
On a monthly basis, consumer prices declined 0.2 percent, following a 0.7 percent gain in September while markets estimated a 0.25 percent fall. It was the first monthly drop since June.