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South Korea Consumer Prices Decline in May
South Korea's consumer prices declined by 0.3 percent year-on-year in May 2020 from a 0.1 percent uptick in the previous month, falling more than expected by the 0.2 percent drop expected by consensus. It was the largest decline since September, mainly explained by demand-side shocks caused by implementation of measures to prevent and control the COVID-19 outbreak. The decline was mainly explained by prices for transport, down 6.9 percent after falling 2.3 percent in April. Also, education prices fell 2.8 percent after declining 2.4 percent. In contrast, prices for food & beverages climbed 2.4 percent after rising 1.7 percent. On a monthly basis, consumer prices fell 0.2 percent after declining 0.6 percent in April, matching expectations.
Published on 2020-06-01

South Korea Inflation Rate at 6-Month Low
South Korea's consumer price inflation declined to 0.1 percent year-on-year in April 2020 from 1.0 percent in the previous month and below market expectations of 0.35 percent. It was the lowest rate since last October, due to demand-side shocks caused by implementation of measures to prevent and control the COVID-19 outbreak. Inflation eased for food & non-alcoholic beverages (1.7 percent vs 2.6 percent in March), restaurants & hotels (1.0 percent vs 1.1 percent) and clothing & footwear (0.1 percent vs 0.6 percent). Also, there were declines in prices of transport (-2.3 percent vs 2.7 percent), mainly due to a drop in prices of international airfares, and education (-2.4 percent vs -0.9 percent). On the other hand, inflation picked up for housing & utilities (1.2 percent vs 1.1 percent) and was steady for health (at 1.6 percent). On a monthly basis, consumer prices fell 0.6 percent, while markets had forecast a 0.3 percent drop.
Published on 2020-05-03

South Korea Inflation Rate Edges Down
South Korea's consumer price inflation dropped to 1.0 percent year-on-year in March 2020 from 1.1 percent in the previous month and compared to market expectations of 0.9 percent. Slower inflation was mainly explained by a slowdown in prices of transport (2.7 percent vs 6.2 percent in February), namely automobiles in the wake of the government’s tax cut aimed at stimulating consumption. In contrast, inflation for food & non-alcoholic beverages jumped to 2.6 percent from 0.7 percent in the previous month in the midst of the coronavirus outbreak, with vegetable prices soaring 15.2 percent following a 9.2 percent climb in February. Meanwhile, prices for milk, cheese and eggs jumped 4.4 percent (vs 2.5 percent). Also, costs were higher for housing & utilities (1.1 percent vs 0.9 percent); health (1.6 percent vs 1.5 percent) and restaurants & hotels (1.1 percent vs 0.9 percent). On a monthly basis, consumer prices declined 0.2 percent after remaining unchanged in February.
Published on 2020-04-01

South Korea Inflation Slows to 1.1% YoY
South Korea's consumer price inflation declined to 1.1 percent year-on-year in February 2020 from 1.5 percent in the previous month and above market expectations of 1 percent. The print follows the highest rate since November 2018 booked in January. The decline was mainly explained by prices of food & non-alcoholic beverages (0.7 percent vs 1.8 percent), housing & utilities (0.9 percent vs 1.4 percent), and health (1.5 percent vs 1.8 percent). Also, prices fell for communication (-1.4 percent), entertainment & culture (-1.8 percent), and education (-0.8 percent). In contrast, transport prices surged 6.2 percent for the second straight month. On a monthly basis, consumer prices remained unchanged after increasing a sharp 0.6 percent in the previous month. Before the coronavirus outbreak, market expectations for 2020 were split between no change to the central bank’s benchmark rate currently standing at 1.25 percent and a 25-bps cut. However, monetary stimulus bets are rising.
Published on 2020-03-02

South Korea Inflation Rate Jumps to 14-Month High
South Korea's consumer price inflation rose to 1.5 percent year-on-year in January 2020 from 0.7 percent in the previous month and above market expectations of 1.1 percent. That was the highest rate since November 2018 boosted by prices of transport (6.2 percent vs 2.2 percent in December), food & non-alcoholic beverages (1.8 percent vs 0.1 percent), housing & utilities (1.4 percent vs 1.3 percent), health (1.8 percent vs 1.4 percent), restaurants & hotels (1.2 percent vs 1 percent), and other goods & services (2 percent vs 1.7 percent). On a monthly basis, consumer prices rose 0.6 percent after climbing 0.2 percent in December. The inflationary upturn limits the central bank’s ability to further ease monetary conditions despite the coronavirus outbreak. Market expectations for 2020 are currently split between no change to the central bank’s benchmark rate currently standing at 1.25 percent and a 25-bps cut.
Published on 2020-02-03

South Korea Inflation Climbs to 6-Month High
Consumer prices in South Korea rose 0.7 percent year-on-year in December 2019, after rising 0.2 percent in the previous month and slightly above market forecasts of a 0.6 percent increase. It was the highest inflation rate in six months mainly due to cost of housing & utilities (1.3 percent), transport (2.2 percent), and restaurants & hotels (1.0 percent). On a monthly basis, consumer prices rebounded 0.2 percent after declining 0.6 percent in November. The average rate of inflation for all of 2019 eased to a record-low 0.4 percent from 1.5 percent in 2018, raising expectations that the central bank might cut rates further in 2020.
Published on 2019-12-30

South Korea November Inflation Rate at 4-Month High
Consumer prices in South Korea rose 0.2 percent year-on-year in November 2019, after being unchanged in the previous month but below market forecasts of a 0.5 percent gain. It was the first increase in consumer prices in four months mainly due to a higher cost of utilities.
Published on 2019-12-01

South Korea Consumer Prices Flat in October
Consumer prices in South Korea remained unchanged year-on-year in October 2019, following a 0.4 percent decline in the previous month and compared with market expectations of a 0.3 percent drop. Prices avoided a second month of deflation after booking in September the first fall since data releases began in 1965, as higher utility prices offset decreased prices of agricultural products.
Published on 2019-10-31

South Korea Posts Deflation for the First Time on Record
Consumer prices in South Korea fell 0.4 year-on-year in September 2019, following a flat reading in the previous month and compared with market expectations of a 0.3 percent decline. That was the first deflation since data releases began in 1965, mainly due to a plunge in cost of farm products as improved weather boosted production.
Published on 2019-09-30

South Korea Inflation Hits Record Low
Consumer prices in South Korea were unchanged year-on-year August 2019, easing from a 0.6 percent gain in the previous month and missing market expectations of a 0.3 percent rise. That was the lowest inflation rate since the country began releasing inflation data in 1965 due mainly to a plunge in fresh foods prices. The core CPI, which excludes oil and agricultural products, advanced 0.9 percent in August, below 1 percent in July. On a monthly basis, consumer prices increased 0.2 percent in August, reversing a 0.3 percent fall in July, but missing expectations of a 0.5 percent increase.
Published on 2019-09-02

South Korea Inflation Rate Edges Down to 0.6% YoY
South Korea's annual inflation rate edged down to 0.6 percent in June 2019 from 0.7 percent in the previous month and compared to market expectations of a 0.85 percent increase. Slower inflation was mainly explained by a 1.6 percent decline in the fresh food index (vs 0.0 in May). In contrast, prices for utilities climbed 2.0 percent after a 1.3 percent climb. On a monthly basis, consumer prices fell 0.3 percent, after declining 0.2 percent in the previous month and compared to market forecasts of an unchanged reading.
Published on 2019-07-31

South Korea Annual Inflation Rate Steady at 0.7% in June
South Korea's annual inflation rate was unchanged at 0.7 percent in June 2019, below market expectations of a 1.0 percent increase. Cost of food and non-alcoholic beverage rose the most in five months while transport prices fell further. On a monthly basis, consumer prices declined 0.2 percent, after increasing 0.2 percent in the previous month and compared to market forecasts of a 0.1 percent gain.
Published on 2019-07-01

South Korea Inflation Rate Climbs to 4-Month High
South Korea's annual inflation rate edged up to 0.7 percent in May 2019 from 0.6 percent in the previous month but below market expectations of 0.8 percent. It was the highest inflation rate in four months, as prices of fresh foods declined at a softer rate of 2.1 percent compared to 2.7 percent in April. On a monthly basis, consumer prices increased 0.2 percent, after rising 0.4 percent in the previous month and compared to market expectations of a 0.3 percent climb.
Published on 2019-06-03

South Korea Annual Inflation Rate at 3-Month High in April
South Korea's annual inflation rate rose to 0.6 percent in April of 2019 from 0.4 percent in the previous month and above market expectations of 0.4 percent. It was the highest inflation rate in three months, amid a faster rise in prices of food and a softer decline in cost of transport. On a monthly basis, consumer prices increased 0.4 percent, rebounding from a 0.2 percent drop in March, and higher than market consensus of a 0.2 percent rise.
Published on 2019-05-01

South Korea Inflation Rate Slows to 31-Month Low in March
South Korea's annual inflation rate fell to 0.4 percent in March of 2019 from 0.5 percent in the previous month, well below market expectations of 0.9 percent. It was the lowest inflation rate since August 2016, mainly driven by a slowdown in cost of housing and utilities. On a monthly basis, consumer prices declined 0.2 percent, following a 0.4 percent increase a month earlier, and compared to market consensus of a 0.4 percent gain.
Published on 2019-04-01

South Korea Inflation Rate at 2-1/2-Year Low in February
South Korea's annual inflation rate fell to 0.5 percent in February of 2019 from 0.8 percent in the previous month, matching market expectations. It was the lowest inflation rate since August 2016, mainly due to a slowdown in cost of fresh food prices. On a monthly basis, consumer prices rose 0.4 percent, following a 0.1 percent fall in a month earlier, and compared to market consensus of a 0.5 percent gain.
Published on 2019-03-05

South Korea January Inflation Rate Lowest since 2016
South Korea's annual inflation rate fell to 0.8 percent in January of 2019 from 1.3 percent in the previous month and below market expectations of 1.3 percent. It was the lowest inflation rate since August 2016, as cost slowed for food and housing & utilities, while cost of transport declined at a faster rate. On a monthly basis, consumer prices declined unexpectedly by 0.1 percent, following a 0.3 percent fall in a month earlier, and missing market consensus of a 0.4 percent increase.
Published on 2019-01-31

South Korea Inflation Rate at 9-Month Low of 1.3%
South Korea's annual inflation rate eased to 1.3 percent in December of 2018 from 2.0 percent in the previous month and below market expectations of 1.7 percent. It was the lowest inflation rate since March, amid a softer rise in cost of housing & utilities and food while transport prices declined. On a monthly basis, prices went down 0.3 percent after a 0.7 percent fall in November.
Published on 2018-12-30

South Korea Inflation Rate Steady at 2% in November
South Korea's annual inflation rate was at 2.0 percent in November of 2018, unchanged from the previous month and below market expectations of 2.2 percent. It remained the highest inflation rate since September last year, amid a faster rise in cost of housing & utilities while inflation slowed for food and transport. On a monthly basis, prices dropped 0.7 percent after a 0.2 percent decline in October.
Published on 2018-12-04

South Korea Inflation Rate Edges Up to 13-Month High
South Korea's annual inflation rate edged up to 2.0 percent in October of 2018 from 1.9 percent in the previous month and well above market expectations of 1.7 percent. It was the highest inflation in thirteen months, mainly nudged by fresh food (+10.5 percent vs +8.6 percent in September). Also, the inflation rate for industrial products edged up to 2.0 percent from 1.9 percent. In contrast, prices for utilities declined 1.9 percent (vs -1.8 percent), whereas the inflation rate for prices cooled to 1.3 percent (vs 1.4 percent).
Published on 2018-10-31