South Korea's consumer price inflation rose to 1.5 percent year-on-year in January 2020 from 0.7 percent in the previous month and above market expectations of 1.1 percent. That was the highest rate since November 2018 boosted by prices of transport (6.2 percent vs 2.2 percent in December), food & non-alcoholic beverages (1.8 percent vs 0.1 percent), housing & utilities (1.4 percent vs 1.3 percent), health (1.8 percent vs 1.4 percent), restaurants & hotels (1.2 percent vs 1 percent), and other goods & services (2 percent vs 1.7 percent). On a monthly basis, consumer prices rose 0.6 percent after climbing 0.2 percent in December. The inflationary upturn limits the central bank’s ability to further ease monetary conditions despite the coronavirus outbreak. Market expectations for 2020 are currently split between no change to the central bank’s benchmark rate currently standing at 1.25 percent and a 25-bps cut.
Inflation Rate in South Korea averaged 7.18 percent from 1966 until 2020, reaching an all time high of 32.50 percent in October of 1980 and a record low of -0.40 percent in September of 2019. 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. source: Statistics Korea
Inflation Rate in South Korea is expected to be 1.10 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 1.40 in 12 months time. In the long-term, the South Korea Inflation Rate is projected to trend around 2.10 percent in 2021 and 1.90 percent in 2022, according to our econometric models.