South Korea Inflation Rate Slows To 1.9% In February 


Consumer prices in South Korea increased 1.9 percent year-on-year in February of 2017, following a 2 percent rise in the previous month and beating expectations of a 1.6 percent upswing. The inflation rate fell from the central bank target of 2 percent after hitting it in the previous month for the first time since it was introduced in 2016.

The slowdown in annual inflation was mainly explained by food and non-alcoholic beverages, which rose at a slower 2.9 percent year-on-year following a 5.3 percent increase in the previous month. Inflation also eased for recreation and culture (1.1 percent from 2.4 percent in January); education (1.3 percent from 1.4 percent); miscellaneous goods & services (3.1 percent from 3.3 percent); and clothing & footwear (1.1 percent from 1.3 percent).

In contrast, prices rose at a faster pace in transport (6 percent from 3.8 percent in January); alcoholic beverages & tobacco (1.4 percent from 0.8 percent); and restaurants & hotels (2.3 percent from 2.2 percent).

Inflation in communication remained at 0.8 percent in February, while prices of furnishings, household equipment & routine maintenance (+0.4 percent from -0.3 percent in January) and housing, water, electricity, gas & other fuels (0.0 percent from -0.3 percent) left the deflationary zone.

On a monthly basis, inflation eased to 0.3 percent from 0.9 percent in January.

South Korea Inflation Rate Slows To 1.9% In February 


Mario | mario@tradingeconomics.com
3/3/2017 1:21:29 AM