South Korea Inflation Rate at 5-Month Low of 1.4%



South Korea's annual inflation eased to 1.4 percent in August of 2018 from 1.5 percent in the previous three months but slightly above market expectations of 1.3 percent. It was the lowest inflation rate since March, as cost of transport rose at a softer pace while cost of housing & utilities fell.

Year-on-year, inflation eased for: transport (4.6 percent vs 4.7 percent in July); restaurants & hotels (2.6 percent vs 2.7 percent); clothing & footwear (0.6 percent vs 1.3 percent); furnishings, household equipment & routine maintenance (3.1 percent vs 3.5 percent); and alcoholic beverages & tobacco (0.1 percent vs 0.2 percent). In addition, cost fell for: housing, water, electricity, gas & other fuels (-0.8 percent vs 0.8 percent); health (-0.9 percent vs -1 percent); and communications (-1.6 percent from -1.5 percent).

Meantime, inflation was steady for education (at 1.4 percent), while picked up for recreation & culture (0.6 percent vs a flat reading) and miscellaneous goods & services (0.9 percent vs 0.6 percent). Also, prices of food & non-alcoholic beverages increased by 3 percent, twice faster than a 1.5 percent gain in a month earlier. It was the highest food inflation since September 2017. 

Core CPI, which excludes oil and agricultural products, increased by 1 percent, the same as in July. 

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

On a monthly basis, consumer prices went up 0.5 percent, following a 0.2 percent rise in July while  markets estimated 0.4 percent.

South Korea Inflation Rate at 5-Month Low of 1.4%


Statistics Korea l Rida | rida@tradingeconomics.com
9/4/2018 9:42:28 AM