South Korea June Inflation Rate Steady at 1.5%



South Korea's consumer price inflation stood at 1.5 percent year-on-year in June of 2018, unchanged from the previous month and below market expectations of 1.7 percent. A sharp slowdown in food inflation offset a faster increase in transport prices.

In June, prices rose at a slower pace for food & non-alcoholic beverages (1.8 percent vs 2.5 percent in May); housing, water, electricity, gas & other fuels (0.6 percent vs 0.7 percent); education (1.3 percent vs 1.4 percent); health (0.1 percent vs 0.4 percent); clothing & footwear (0.7 percent vs 0.9 percent); and furnishings, household equipment & routine maintenance (1.8 percent vs 3.1 percent). In addition, prices of alcoholic beverages & tobacco were flat (vs 0.2 percent in May) while communication deflation deepened (-0.6 percent vs -0.3 percent).

On the other hand, inflation picked up for transport (4.1 percent vs 2.6 percent) and miscellaneous goods & services (1 percent vs 0.5 percent); while it was unchanged for both restaurants & hotels (at 2.7 percent) and recreation & culture (at 1.2 percent).

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

On a monthly basis, consumer prices unexpectedly fell by 0.2 percent in June, following a 0.1 percent rise in May and compared to consensus of a flat reading. It was the first monthly decline in three months.

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

South Korea June Inflation Rate Steady at 1.5%


Statistics Korea | Rida | rida@tradingeconomics.com
7/3/2018 11:19:21 AM