In June, prices rose at a slower pace for food & non-alcoholic beverages (1.8 percent vs 2.5 percent in May); housing, water, electricity, gas & other fuels (0.6 percent vs 0.7 percent); education (1.3 percent vs 1.4 percent); health (0.1 percent vs 0.4 percent); clothing & footwear (0.7 percent vs 0.9 percent); and furnishings, household equipment & routine maintenance (1.8 percent vs 3.1 percent). In addition, prices of alcoholic beverages & tobacco were flat (vs 0.2 percent in May) while communication deflation deepened (-0.6 percent vs -0.3 percent).
On the other hand, inflation picked up for transport (4.1 percent vs 2.6 percent) and miscellaneous goods & services (1 percent vs 0.5 percent); while it was unchanged for both restaurants & hotels (at 2.7 percent) and recreation & culture (at 1.2 percent).
Core CPI, which excludes oil and agricultural products, increased by 1.2 percent in June, after a 1.3 percent gain in a month earlier.
On a monthly basis, consumer prices unexpectedly fell by 0.2 percent in June, following a 0.1 percent rise in May and compared to consensus of a flat reading. It was the first monthly decline in three months.
For 2018, the Bank of Korea sees inflation at 1.7 percent.