South Korea Inflation Rate Eases to 2.1% in September


South Korea's consumer prices increased by 2.1 percent year-on-year in September 2017, easing from a 2.6 percent gain in the previous month and missing market expectations of 2.2 percent. Prices rose at a softer pace for food, furnishings, and accommodation.

Year-on-year, prices increased at a slower pace for: Food and non-alcoholic beverages (3.3 percent from 7.4 percent in August); furnishings, household equipment and routine maintenance (0.8 percent from 0.9 percent); restaurants and hotels (2.4 percent from 2.5 percent); health (0.8 percent from 1.3 percent); and education (1 percent from 1.1 percent). In addition, cost of recreation and culture dropped further (-1.4 percent from -1.1 percent).

Meanwhile, prices rose faster for: Transport (2.7 percent from 1.6 percent in August); miscellaneous goods and services (2.7 percent from 2.6 percent); and alcoholic beverages and tobacco (1.8 percent from 1.6 percent).

Inflation was steady for housing and utilities (3.9 percent), clothing and footwear (1.2 percent) and communication (0.3 percent).

Annual core inflation, which excludes volatile items such as energy and food, fell to 1.6 percent from 1.8 percent in the previous month. 

On a monthly basis, consumer prices rose 0.1 percent after increasing 0.6 percent in August.

Statistics Korea | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/1/2017 11:21:14 PM