Consumer prices in South Korea increased 2 percent year-on-year in January of 2017, following a 1.3 percent rise in the previous three months and beating market expectations of 1.5 percent. It is the highest inflation rate since October of 2012, mainly boosted by food and fuel cost. The inflation hit the central bank target of 2 percent for the first time since it was introduced in 2016.
Year-on-year, cost of food and non-alcoholic beverages went up 5.3 percent (4.1 percent in December), the highest in four months. Prices also increased faster for transport (3.8 percent from 1 percent); miscellaneous goods and services (3.3 percent from 2.8 percent); education (1.4 percent from 1.3 percent) and recreation and culture (2.4 percent from 1.4 percent). In addition, inflation was steady for restaurants and hotels (2.2 percent) and cost fell less for housing and utilities (-0.3 percent from -1.3 percent).
Annual core inflation went up to 1.5 percent from 1.2 percent in December.
On a monthly basis, consumer prices increased 0.9 percent after edging up 0.1 percent in December and beating expectations of a 0.4 percent increase.
2/1/2017 11:48:01 PM