South Korea Inflation Rate At 4-Month High Of 2.2% In July


South Korea’s inflation rate rose 2.2 percent from a year earlier in July of 2017, faster than a 1.9 percent rise in a month earlier and above market consensus of a 2.0 percent increase. It was the first time since March that the inflation rate stands above the central bank's target of 2.0 percent. Prices increased at a faster pace for food and non-alcoholic beverages and housing while cost of transport went up further.

In July, prices increased at a faster pace for: food and non-alcoholic beverages (5.6 percent from 4.6 percent), alcoholic beverages and tobacco (1.8 percent from 1.7 percent), clothing and footwear (1.2 percent from 1.1 percent); housing & utilities (3.9 percent from 1.7 percent), restaurants and hotels (2.4 percent from 2.3 percent) and miscellaneous goods and services (2.7 percent from 2.2 percent). Also, cost rebounded for communication  (0.3 percent from -0.1 percent).

Meantime, cost rose less than in a month earlier for: furnishing, household equipment and routine maintenance (0.5 percent from 1.7 percent), transport (0.6 percent from 2.0 percent) and education (1.1 percent from 1.2 percent).

Inflation was steady for health (1.2 percent). In contrast, cost declined for recreation and culture (-0.6 percent from -1.0 percent), 

On a monthly basis, consumer prices rose 0.2 percent after declining 0.1 percent in June. 

Core inflation, which excludes volatile items such as oil and food, rose  1.8 percent from 1.3 percent in June. 

Statistics Korea l Rida Husna | rida@tradingeconomics.com
8/1/2017 7:35:34 AM