South Korea Inflation Rate Eases in March



Consumer prices in South Korea rose 1.0 percent year-on-year in March of 2016, slowing from a 1.3 percent rise in the preceding month and below market expectations of 1.3 percent. Cost of housing & utilities and transport declined further while prices of food eased.

Year-on-year, prices increased for: food and non-alcoholic beverages (+3.1 percent in March from +3.3 percent in February); clothing & footwear (+1.8 percent from +1.9 percent); furnishing, household equipment & routine maintenance (+1.7 percent from +1.8 percent), recreation and culture (+1.6 percent from +1.4 percent), education (+1.7 percent from +1.8 percent), restaurants and hotels (+2.5 percent from +2.9 percent) and miscellaneous goods and services (+1.2 percent from +1.5 percent). In contrast, cost declined for: housing, water, electricity, gas and other fuels (-0.1 percent from -0.1 percent), transport (-3.3 percent from -1.4 percent) and communication (-0.1 percent from -0.1 percent). Prices remained steady for alcoholic beverages and tobacco (+0.7 percent) and health (+1.1 percent). 

By sector, prices of fresh food recorded the highest increase (+9.7 percent), followed by agricultural, livestock and fisheries products (+ 5.4 percent) and service sector (+2.3 percent). In contrast, cost of industrial goods fell by 0.9 percent. 

Core inflation rate was recorded at 1.7 percent, as compared to 1.8 percent in the previous month.

On a monthly basis,  consumer prices dropped by 0.3 percent after gaining 0.5 percent in February and missing market consensus of a 0.1 percent increase.

South Korea Inflation Rate Eases in March


Statistics Korea l Rida Husna | rida@tradingeconomics.com
4/1/2016 1:38:01 AM