South Korea Inflation Jumps to 1-Year High

South Korea's annual inflation accelerated to 1.9 percent in September of 2018 from 1.4 percent in the previous month and well above market expectations of 1.55 percent. It was the highest inflation in a year, mainly nudged by agricultural products (+7.9 percent), particularly vegetables (+14.5 percent) due to heavy rain. Also, electricity prices rose 20.2 percent.

Year-on-year, prices advanced faster for food and non-alcoholic beverages (5.2 percent from 3 percent in August); education (1.5 percent from 1.4 percent) and recreation and culture (1.9 percent from 0.6 percent). In addition, cost rebounded for housing and utilities (0.7 percent from -0.8 percent).

On the other hand, prices slowed for restaurant and hotels (2.4 percent from 2.6 percent); transport (4.1 percent from 4.6 percent) and furniture and household equipment (2.4 percent from 3.1 percent). Meanwhile, inflation was steady for clothing and footwear (0.6 percent, the same as in August) and miscellaneous goods and services (0.9 percent); and prices continued to decline for health (-0.5 percent from -0.9 percent) and communication (-1.7 percent from -1.6 percent). 

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

On a monthly basis, consumer prices went up 0.7 percent, following a 0.5 percent gain in August and above market consensus of 0.3 percent.

South Korea Inflation Jumps to 1-Year High

Statistics Korea l Agna Gabriel |
10/5/2018 8:47:02 AM