South Korea Inflation Rate Slows to 1.3% in August


In August of 2013, South Korean annual inflation rate eased to 1.3 percent, from 1.4 percent in July, due to falling prices of miscellaneous services and stable cost of household items. Inflation a year ago was recorded at 1.2 percent.

On a year-over-year basis, prices of housing, water, electricity, gas and other fuels recorded the highest increase (up by 3.2 percent, from 3.3 percent in July). Cost of recreation and culture increased 2.4 percent, from 1.8 percent increase in the previous month and prices of food accelerated to 2.2 percent, from 1.3 percent in July. In contrast, transport prices eased to 0.5 percent, from 1 percent increase recorded in July.

Cost of furnishings, household equipment and routine maintenance of the house dropped 0.2 percent, while the index for miscellaneous goods and services declined 3.9 percent. 

From July to August, the index for food and non-alcoholic beverages and recreation and culture increased 2 percent and 0.6 percent, respectively. Transport prices increased 0.5 percent and the index for housing, water, electricity, gas and other fuels and furnishings, household equipment and routine maintenance increased 0.3 respectively.

Cost of miscellaneous goods and services decreased 3.8 percent in August, while the index for alcoholic beverages and tobacco and communication remained unchanged.

Core inflation rate, which excludes agricultural products and oils, was unchanged from the preceding month and rose 1.3 percent from August of 2012.

South Korea Inflation Rate Slows to 1.3% in August


Statistics Korea | Joana Taborda | joana.taborda@tradingeconomics.com
9/2/2013 9:59:20 AM