South Korea Inflation Down to 1.4% in February


In South Korea, the inflation rate slowed to 1.4 percent in February of 2013, well below the central bank’s expectations, mainly due to a slightly increase in food prices and a decrease in prices of miscellaneous services.

 

On the year-on-year basis, the inflation rate slightly decreased to 1.4 percent in February of 2013 from 1.5 percent recorded in January of 2013. The index for food and non-alcoholic beverages increased 2.7 percent in February from 2 percent recorded in January of 2013, and recreation and culture prices increased 0.5 percent from 0.4 percent in January. The index for clothing and footwear, housing, water, electricity, gas and other fuels increased 3.3 percent and 3.5 percent respectively in February of 2013, from 4 percent and 3.8 percent respectively, recorded in January of 2013. The index for furnishings, household equipment and routine maintenance, health, transport and alcoholic beverages only went up 0.3 percent, 0.1 percent, 0.6 percent and 1.6 percent respectively in February, from 0.5 percent, 0.4 percent, 1.2 percent and 2.5 percent recorded in January. Prices of education, restaurants and hotels increased 1.8 percent and 1 percent respectively from 1.9 percent and 0.9 percent recorded the previous month. Prices of miscellaneous goods and services decreased 4.4 percent in February of 2013 from the same period last year while communication prices remained unchanged in February.
 
 
On the month-on-month basis, the inflation rate slightly decreased to 0.3 percent in February of 2013 from 0.6 percent in the preceding month. The index for clothing and footwear and furnishings, household equipment and routine maintenance and miscellaneous goods and services increased 0.3 percent, 0.8 percent and 0.4 percent from 0 percent, 0.1 percent and -4.4 percent recorded in January of 2013. The index for food and non-alcoholic beverages, housing, water, electricity, gas and other fuels, health and transport only went up 0.3 percent, 0.4 percent, 0.1 percent and 0.5 percent respectively in February, from 1.9 percent, 0.6 percent, 0.9 percent and 0.2 percent recorded in January. The index for education, restaurants and hotels increased 0.3 percent respectively, from 0.6 percent and 0.4 percent recorded the previous month. The index for Alcoholic beverages and tobacco, Communication and Recreation and culture remained unchanged in February.

Joana Taborda | joana.taborda@tradingeconomics.com
3/4/2013 12:33:31 PM