South Korea July Inflation Rate Steady at 1.5% for 3rd Month



South Korea's consumer price inflation stood at 1.5 percent year-on-year in July of 2018, the same as in the previous two months and below market expectations of 1.7 percent. Food inflation slowed to a four-month low while cost rose at a faster pace for housing & utilities and transport.

In July, prices of food & non-alcoholic beverages increased by 1.5 percent, compared to a 1.8 percent in a month earlier. It was the lowest food inflation since March. Also, cost rose less for miscellaneous goods & services (0.6 percent from 1 percent in June), while increased at a faster pace for: housing, water, electricity, gas & other fuels (0.8 percent from 0.6 percent); clothing & footwear (1.3 percent from 0.7 percent); furnishings, household equipment & routine maintenance (3.5 percent from 1.8 percent); and transport (4.7 percent from 4.1 percent).

Meantime, inflation was steady for alcoholic beverages & tobacco (0.2 percent); education (1.4 percent); and restaurants & hotels (2.7 percent); while cost was flat for recreation & culture (from  1.2 percent). On the other hand, cost fell for health (-1 percent from 0.1 percent) and communications (-1.5 percent from -0.6 percent).

Core CPI, which excludes oil and agricultural products, increased by 1 percent, after a 1.2 percent gain in June. 

For 2018, the Bank of Korea sees inflation at 1.7 percent. 

On a monthly basis, consumer prices went up 0.2 percent, following a 0.2 percent drop in June. 

South Korea July Inflation Rate Steady at 1.5% for 3rd Month


Statistics Korea l Rida | rida@tradingeconomics.com
8/1/2018 10:22:43 AM