South Korea Inflation Rate at 14-Year Low in October

In October of 2013, South Korean annual inflation rate eased for the third straight month to 0.7 percent, the lowest value since September of 1999. Yet, favorable weather conditions, lower global crude oil prices and the strengthen of the Won against the US dollar contributed to the drop in food and transport prices. From September to October, prices fell 0.3 percent.

Year-on-year, food prices dropped 1.8 percent, following the 1.2 percent decline in the previous month. Transport cost declined 1.4 percent, after contracting 0.9 percent in September. Prices of miscellaneous goods and services decreased 0.3 percent, followed by cost of communication (-0.1 percent). In contrast, housing prices showed again the highest annual increase (3.1 percent, from 3.2 percent a month earlier), followed by cost of clothing and footwear (2.9 percent). 

From September to October, the index for food and non-alcoholic beverages, transport, recreation and culture and clothing and footwear decreased 2 percent, 0.5 percent, 0.6 percent and 0.1 percent respectively. The index for housing, water, electricity, gas and other fuels went up by 0.2 percent and cost of furnishings, household equipment and routine maintenance, health and miscellaneous goods and services increased 0.3 percent. 

Core inflation rate, which excludes agricultural products and oils was unchanged from the preceding month and rose 1.6 percent from October of 2012.

South Korea Inflation Rate at 14-Year Low in October

Statistics Korea | Joana Taborda |
11/1/2013 9:32:42 AM