South Korea Inflation Rate Lowest in Almost 16 Years



South Korean annual inflation rate eased to 0.4 percent in March of 2015 from a 0.5 percent n February, as cost of transport, recreation & culture and housing and utilities declined. The figure came slightly below market forecasts and is the lowest since July of 1999.

Year-on-year, downward pressures came from: transport (-9.7 percent in March from -11.1 in the preceding month), recreation & culture (-0.9 percent from +0.1 percent) and housing, water, electricity, gas and other fuels (-0.4 percent from +0.4 percent). Cost of communication also declined by 0.1 percent, following a 0.1 percent drop in the previous month.

Prices moderated for: food and non-alcoholic beverages (+0.6 percent from +1.6 percent); clothing and footwear (+1.7 percent from +1.8 percent); furnishing, household equipment & routine maintenance (+2.7 percent from +2.8 percent); health (+1.1 percent from +1.2 percent); education (+1.5 percent from +1.7 percent) and miscellaneous goods and services (+3.0 percent from +3.3 percent). Prices increased only for alcoholic beverages and tobacco (+49.8 percent from +49.6 percent) and reataurants & hotels (+2.2 percent from +1.6 percent).

On a monthly basis, consumer prices were flat in March.

Annual core inflation, which strips out volatile energy and food prices, slowed to 2.1 percent from 2.3 percent in the previous month.

South Korea Inflation Rate Lowest in Almost 16 Years


Statistics Korea l Rida Husna l rida@tradingeconomics.com
4/1/2015 3:31:54 PM