South Korean annual inflation slowed to 1.60 percent in July of 2014 from 1.70 percent in the previous month. Prices of clothing and footwear rose the most while education costs remained stable in the month.
In July of 2014, clothing and footwear prices gained 5.2 percent on yearly basis from 4.6 percent in June. Costs of furnishing, household equipment and routine maintenance up 2.3 percent from 1.7 percent a month ago. Prices of food and non-alcoholic beverages eased to 1.1 percent in the month from 1.5 percent in June. Prices of utilities also slowed to 2.8 percent from 3.0 percent in the previous month while costs of education in July unchanged from the preceding month at 1.7 percent.
Falling prices only happened to alcoholic beverages and transportation, respectively by 0.2 percent and 0.9 percent.
On a month-on-month basis, inflation rose to 0.1 percent in July of 2014, compared with a 0.1 percent fall in the previous month. Price pressures in July mostly came from health and leisure costs as well as restaurants and hotels prices, which respectively up by 0.3 percent, 1.7 percent and 0.2 percent. While prices of utilities and clothing and footwear were down in July by 0.1 percent respectively, costs of education, tobacco, transport, communication, furnishing and miscellaneous goods and services were relatively unchanged.
Core CPI, which excludes volatile energy and food prices, slightly rose 2.2 percent year on year in July after gaining 2.1 percent a month ago.
The central bank of Korea forecasts the country’s inflation for 2014 may accelerate to 1.9 percent from a 1.3 percent increase last year.
8/1/2014 2:27:09 AM