South Korean Inflation Rate Up to 11-Month High in October

Consumer prices in South Korea increased by 0.9 percent year-on-year in October of 2015, following a 0.6 percent growth in the previous month and beating market expectations of 0.8 percent. It was the highest value since November last year, as prices of food and furnishings rose further while cost of housing and transportation fell at a slower pace.

Year-on-year, prices of food and non-alcoholic beverages jumped 1.9 percent (from +1 percent in September) and those of furnishing and household equipment & routine maintenance rose 2 percent (from +1.8 percent). Meanwhile, cost of housing, water, electricity, gas and other fuels declined by 0.4 percent (easing from -1.2 percent in September) and transport prices dropped 6.7 percent (from -7.0 percent). 

Additional upward pressure came from: restaurants and hotels (+2.5 percent); miscellaneous goods and services (+2.3 percent); education (+1.8 percent); and health (+1.4 percent). While cost of communication fell 0.3 percent.

On a monthly basis, consumer prices remained unchanged, following a 0.2 percent decline in the preceding month, as higher cost of housing and utilities (+1 percent) and accomodation (+0.1 percent) were enough to offset a decline in prices of food (-1.1 percent) and transportation (-0.5 percent).

Meanwhile, annual core inflation, which strips out volatile energy and food prices, rose to 2.3 percent, from 2.1 percent in the previous two months and hitting its highest level since February 2015.

South Korean Inflation Rate Up to 11-Month High in October

Statistics Korea l Joana Ferreira |
11/3/2015 12:49:24 AM