Consumer prices in South Korea were unchanged year-on-year August 2019, easing from a 0.6 percent gain in the previous month and missing market expectations of a 0.3 percent rise. That was the lowest inflation rate since the country began releasing inflation data in 1965 due mainly to a plunge in fresh foods prices. Inflation Rate in South Korea averaged 7.23 percent from 1966 until 2019, reaching an all time high of 32.50 percent in October of 1980 and a record low of 0 percent in August of 2019.

Inflation Rate in South Korea is expected to be -0.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in South Korea to stand at 1.30 in 12 months time. In the long-term, the South Korea Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.

South Korea Inflation Rate
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Calendar GMT Actual Previous Consensus TEForecast
2019-06-03 11:00 PM Inflation Rate YoY May 0.7% 0.6% 0.8% 0.7%
2019-07-01 11:00 PM Inflation Rate YoY Jun 0.7% 0.7% 1% 1%
2019-07-31 11:00 PM Inflation Rate YoY Jul 0.6% 0.7% 0.85% 0.9%
2019-09-02 11:00 PM Inflation Rate YoY Aug 0.0% 0.6% 0.2% 0.3%
2019-09-30 11:00 PM Inflation Rate YoY Sep 0.0% -0.1%
2019-10-31 11:00 PM Inflation Rate YoY Oct -0.4%
2019-12-01 11:00 PM Inflation Rate YoY Nov 0.1%



South Korea Inflation Hits Record Low

Consumer prices in South Korea were unchanged year-on-year August 2019, easing from a 0.6 percent gain in the previous month and missing market expectations of a 0.3 percent rise. That was the lowest inflation rate since the country began releasing inflation data in 1965 due mainly to a plunge in fresh foods prices.

Prices of food and non-alcoholic beverages declined by 3.3 percent in August, compared to a 0.8 percent gain a month earlier. It was the first yearly fall in the sub-index since July 2016, amid a slump in cost of fresh foods, of which fresh seafood, fresh vegetables, and fresh fruits. In addition, cost fell further for transport (-1.9 percent vs -1.6 percent); communication (-2.2 percent vs -2.6 percent); and recreation & culture (-0.2 percent, the same as in July).

At the same time, clothing and footwear prices were unchanged for the second straight month; while inflation slowed for housing, water, electricity, gas and other fuels (1.2 percent vs 1.4 percent); furnishing, household equipment & routine maintenance (1.9 percent vs 2.1 percent); health (0.9 percent vs 1 percent); education (1 percent vs 1.1 percent); and miscellaneous gooods and services (1.5 percent vs 1.8 percent). Inflation was steady for both alcoholic beverages and tobacco (at 0.8 percent) and restaurants & hotels (at 1.7 percent).

For 2019, the Bank of Korea targets inflation rate at 2 percent.

The core CPI, which excludes oil and agricultural products, advanced 0.9 percent in August, below 1 percent in July.

On a monthly basis, consumer prices increased 0.2 percent in August, reversing a 0.3 percent fall in July, but missing expectations of a 0.5 percent increase.


Statistics Korea | Rida Husna | rida@tradingeconomics.com
9/3/2019 12:29:43 PM



South Korea Prices Last Previous Highest Lowest Unit
Inflation Rate 0.00 0.60 32.50 0.00 percent [+]
Inflation Rate Mom 0.20 0.20 5.29 -2.52 percent [+]
Consumer Price Index CPI 104.81 104.56 105.65 2.63 Index Points [+]
Core Consumer Prices 105.25 105.14 105.37 9.61 Index Points [+]
Core Inflation Rate 0.90 1.00 30.50 -0.40 percent [+]
GDP Deflator 103.90 104.34 106.94 0.79 Index Points [+]
Producer Prices 103.55 103.50 107.95 5.03 Index Points [+]
Producer Prices Change -0.30 0.10 47.40 -4.70 percent [+]
Export Prices 100.56 100.79 202.14 17.87 Index Points [+]
Import Prices 110.00 109.36 145.47 5.99 Index Points [+]
Food Inflation -3.30 0.80 6434.02 -4.50 percent [+]
Inflation Expectations 2.00 2.10 4.60 2.00 percent [+]
Cpi Housing Utilities 101.56 101.47 103.15 31.61 Index Points [+]
CPI Transportation 102.59 102.58 112.54 27.63 Index Points [+]


South Korea Inflation Rate

In South Korea, the most important categories in the consumer price index are Housing, water, electricity, gas and other fuels (17 percent of total weight) and Food and non-alcoholic beverages (13.6 percent of total weight). Others include Restaurants and hotels (12 percent); Education (11.4 percent); Transportation (10.9 percent); Health (7.3 percent); and Clothing and footwear (6.2 percent). The components with the least weight are Communication at 5.8 percent; Miscellaneous goods and services at 5.4 percent; Recreation and culture at 5.3 percent; Furnishings, household equipment and routine maintenance at 3.8 percent; and Alcoholic beverages and tobacco at 1.24 percent. This page provides the latest reported value for - South Korea Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. South Korea Inflation Rate - actual data, historical chart and calendar of releases - was last updated on September of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
0.00 0.60 32.50 0.00 1966 - 2019 percent Monthly
2015=100, NSA




Country Last Previous
Argentina 53.60 Aug/19
Australia 1.60 Jun/19
Brazil 3.43 Aug/19
Canada 2.00 Jul/19
China 2.80 Aug/19
Euro Area 1.00 Aug/19
France 1.00 Aug/19
Germany 1.40 Aug/19
India 3.21 Aug/19
Indonesia 3.49 Aug/19
Italy 0.50 Aug/19
Japan 0.50 Jul/19
Mexico 3.16 Aug/19
Netherlands 2.80 Aug/19
Russia 4.30 Aug/19
Saudi Arabia -1.30 Jul/19
Singapore 0.40 Jul/19
South Africa 4.00 Jul/19
South Korea 0.00 Aug/19
Spain 0.30 Aug/19
Switzerland 0.30 Aug/19
Turkey 15.01 Aug/19
United Kingdom 2.10 Jul/19
United States 1.70 Aug/19


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