In December, South Korean inflation rate rose to 1.1 percent, up from 0.9 percent in November. Prices rose for the second consecutive month driven by higher clothing and housing costs but the rate remains below the Central Bank target of 2.5 percent.
On an annual basis, costs for clothing and footwear (4.2 percent) and for housing, water, electricity, gas and other fuels (+3.4 percent) provided the biggest upward pressures on the overall index. Prices for restaurants and hotels rose 1.7 percent and the index for alcoholic beverages and tobacco was up by 1.0 percent. Food prices dropped 0.9 percent, transport cost declined 0.6 percent and communication prices fell by 0.2 percent.
On a monthly basis, the index for food and non-alcoholic beverages and recreation and culture increased 0.4 percent and 0.3 percent respectively in December. Costs for housing, water, electricity, gas and other fuels and transport went up 0.2 percent respectively. The index for education, restaurants and hotels and miscellaneous goods and services increased 0.1 percent. Prices for clothing and footwear and furnishings, household equipment and routine maintenance decreased 0.1 percent and 0.7 percent, while the index for alcoholic beverages and tobacco, health and communication remained unchanged.
12/31/2013 8:36:54 AM