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South Korea Inflation Hits Highest Level Since 2017
The annual inflation rate in South Korea increased to 2.6 percent in May of 2021 from 2.3 percent in the previous month and in line with market expectations. It was the highest inflation rate since August of 2017, as prices advanced faster for housing (1.1 percent vs 0.5 percent in April), restaurants and hotels (2.0 percent vs 1.8 percent) and transport (9.2 percent vs 6.4 percent). Meanwhile, food & non-alcoholic beverages prices slowed (7.4 percent vs 8.1 percent). On a monthly basis, consumer prices climbed 0.1 percent after rising 0.2 percent in April, also in line with market expectations.
Published on 2021-06-01

South Korea Inflation Hits Highest Level Since 2017
The annual inflation rate in South Korea increased to 2.3 percent in April of 2021 from 1.5 percent in the previous month and beating market estimates of a 2.2 percent gain. It was the highest inflation rate since August of 2017, as prices advanced faster for housing (0.5 percent vs 0.4 percent in March), restaurants and hotels (1.8 percent vs 1.4 percent) and transport (6.4 percent vs 2.0 percent). Meanwhile, food & non-alcoholic beverages prices slowed (8.1 percent vs 8.4 percent). On a monthly basis, consumer prices climbed 0.2 percent after rising 0.1 percent in March, also above market expectations of a 0.1 percent increase.
Published on 2021-05-03

South Korea Inflation Rate at 14-Month High of 1.5%
South Korea's consumer price inflation increased to 1.5 percent year-on-year in March 2021 from 1.1 percent in the previous month and beating market expectations of 1.35 percent. It was the highest inflation rate since January last year, due mainly to a faster rise in prices of housing & utilities (0.4 percent vs 0.1 percent) while transport prices rebounded sharply (2.0 percent vs -2.0 percent). Also, inflation accelerated for restaurants & hotels (1.4 percent vs 1.2 percent in February) and was steady for health (at 1.1 percent). On the other hand, prices continued to increase for food & non-alcoholic beverages (8.4 percent vs 9.7 percent) and clothing & footwear (0.3 percent vs 0.5 percent). In addition, prices of and education fell less (-2.7 percent vs -2.9 percent). On a monthly basis, consumer prices edged up 0.1 percent, while markets had forecast a 0.1 percent drop.
Published on 2021-04-01

South Korea Inflation Rate Jumps to 1.1% YoY
Consumer prices in South Korea increased by 1.1 percent in February after climbing 0.6 percent in January, compared to market expectations of 1 percent, as consumption regained steam following soft readings. The main contributor to the inflationary uptick was utilities, rising 1.2 percent after increasing 0.3 percent in January. Meanwhile, fresh food inflation gained steam and remained well above average (16.2 percent vs 10 percent in January). On a monthly basis, consumer prices climbed 0.5 percent after rising 0.8 percent in January, also above market expectations of a 0.35 percent increase.
Published on 2021-03-03

South Korea Inflation Rate Edges Up
Consumer prices in South Korea increased by 0.6 percent in January after climbing 0.5 percent in December, compared to market expectations of 0.3 percent, as consumption regained steam following soft readings. The main contributor to the inflationary uptick was utilities, rebounding 0.3 percent after edging down 0.1 percent. Meanwhile, fresh food inflation lost steam, but still remained well above average (9.2 percent vs 10 percent in December). On a monthly basis, consumer prices jumped 0.8 percent after rising 0.2 percent in December, well above market expectations of a 0.5 percent increase.
Published on 2021-02-01

South Korea Inflation Edges Down to 0.5% YoY
Consumer prices in South Korea increased by 0.5 percent in December after climbing 0.6 percent in November, compared to market expectations of 0.55 percent, as consumption weakened in the last few weeks. Food inflation rose 3.4 percent on an annual basis, compared to a 2.1 percent drop in prices of the non-food component. On a monthly basis, consumer prices rebounded 0.2 percent after falling 0.1 percent in November, slightly above market expectations of a 0.15 percent increase.
Published on 2020-12-30

South Korea Inflation Rises 0.6% YoY
South Korea's consumer prices increased 0.6 percent year-on-year in November of 2020 following a 0.1 percent rise in the previous month, while markets expected a 0.9 percent gain. The fresh food index fell 11.5% from the previous month, and rose 13.1 percent from the same month last year. Prices of fresh fish jumped 7.1%, while those of fresh vegetables climbed 7.0 percent and of fresh fruits 25.1 percent, compared to the same month last year. On a monthly basis, consumer prices edged down 0.1 percent after declining 0.6 percent in the previous month, compared to market expectations of a 0.2 percent increase.
Published on 2020-12-01

South Korea Inflation Slower than Expected
South Korea's consumer prices increased 0.1 percent year-on-year in October of 2020 following a 1.0 percent rise in the previous month, while markets expected a 0.7 percent gain. It was the lowest inflation in four months, as communication fees declined 21.7 percent over a year ago largely due to a temporary government subsidy on mobile phone bills amid the Covid-19 pandemic. On a monthly basis, consumer prices plunged 0.6 percent after rising 0.7 percent in the previous month, also surprising market expectations of a 0.1 percent increase.
Published on 2020-11-02

South Korea Inflation Rises More than Expected
South Korea's consumer prices increased 1 percent year-on-year in September of 2020 following a 0.7 percent rise in the previous month, while markets expected a 0.7 percent gain. It was the highest inflation rate since March. Compared to the same month last year, food increased by 5.2 percent and non-food products decreased by 1.5 percent. On a monthly basis, inflation jumped 0.7 percent after rising 0.6 percent in the previous month, rising more than the 0.4 percent expected by consensus.
Published on 2020-10-05

South Korea Inflation Hits 5-Month High
South Korea's consumer prices increased 0.7 percent year-on-year in August of 2020 following a 0.3 percent rise in the previous month, while markets expected a 0.4 percent gain. It was the highest inflation rate since March. The jump was mainly explained by a 15.8 percent increase in the fresh foods subindex, up from an 8.4 percent climb in the previous month. On a monthly basis, inflation jumped 0.6 percent after remaining unchanged in the previous month, rising the most in seven months.
Published on 2020-09-01

South Korea Consumer Prices Remain Unchanged
South Korea's consumer prices remained unchanged year-on-year in June 2020 from a 0.3 percent decline in the previous month, while markets expected a 0.1 percent drop. Main downward pressure came from prices for transport, down 5.6 percent after falling 6.9 percent in Mayl. Also, education prices fell 2.9 percent after decreasing 2.8 percent. In contrast, prices for food & beverages climbed 3.3 percent after rising 2.4 percent. On a monthly basis, consumer prices went up 0.2 percent after declining 0.2 percent in May, climbing more than market expectations of 0.05 percent.
Published on 2020-07-01

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, while markets expected a 0.2 percent drop. It was the largest decline since September, mainly explained by demand-side shocks caused by the 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 decreasing 2.4 percent. In contrast, prices for food & beverages climbed 2.4 percent after rising 1.7 percent. On a monthly basis, consumer prices went down 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