South Korea’s inflation rate advanced to 2 percent in May of 2017 from 1.9 percent in the previous month, consistent with market expectations. It was the second straight month that the inflation rate remained at the central bank's target of 2.0 percent. The result was mainly explained by mild growth in prices of food & non-alcoholic beverages, clothing & footwear and furnishings, household equipment & routine maintenance. On a monthly basis, consumer prices increased by 0.1 percent.
By sector, prices increased at a faster pace for food & non-alcoholic beverages (3.4 percent from 2.6 percent in April), clothing & footwear (1 percent from 0.2 percent), furnishings & household equipment (1.8 percent from 0.9 percent), restaurants & hotels (2.4 percent from 2.2 percent). Also, communication prices decreased at the same rate of 0.3 percent in April.
In contrast, prices increased at a slower pace for transport (4.5 percent from 5.4 percent in April).
Meanwhile, price inflation was steady for: miscellaneous goods & services (2.5 percent) and health (0.7 percent).
On a monthly basis, consumer prices advanced 0.1 percent after retreating 0.1 percent in April. According to Statistics Korea, surging prices of livestock such as pork and poultry were primarily responsible for the increase this month.
Core inflation, which excludes volatile items such as oil and food, increased to 1.5 percent from 1.3 percent in April.
6/1/2017 10:14:40 AM