South Korea Inflation Rate Rises Less than Estimated


Consumer prices in South Korea rose by 1.3 percent year-on-year in March of 2018, after 1.4 percent in the previous month. Figures came below market consensus of 1.6 percent, mainly due to a slowdown in cost of housing & utilities, food & non-alcoholic beverages and transport.

In March, prices rose less for housing, water, electricity, gas & other fuels (1.3 percent from 1.4 percent in February); food & non-alcoholic beverages (1.5 percent from 2.2 in February); restaurants & hotels (2.5 percent from 2.8 percent); recreation & culture (0.4 percent from 0.5 percent) and alcoholic beverages & tobacco (0.3 percent from 0.5 percent).

Meanwhile, inflation was steady for clothing & footwear (1.3 percent); furnishing, household equipment & routine maintenance (2.9 percent) and education (1.2 percent). On the other hand, cost went up at a faster pace for transport (1.4 percent from 1.3 percent); health (0.6 percent from 0.4 percent) and miscellaneous goods & services (0.3 percent from 0.1 percent). Also, cost rebounded for communication (0.4 percent from -0.2 percent).

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

Core CPI, which excludes oil and agricultural products, increased by 1.3 percent in February, following a 1.2 percent gain in a month earlier. 

On a monthly basis, consumer prices dropped 0.1 percent, after a 0.8 percent rise in the previous month while markets estimated a 0.2 percent increase.

South Korea Inflation Rate Rises Less than Estimated


Statistics Korea | Gabriela Costa | gabriela.costa@tradingeconomics.com
4/3/2018 10:40:36 AM