Korea Inflation January 2016


Korea: Inflation drops in January

February 2, 2016

In January, consumer were unchanged over the previous month, which came in below the 0.3% rise tallied in December. January’s print mainly reflected that higher prices for food and non-alcoholic beverages offset lower prices for housing, water, electricity and other fuels as well as clothing and footwear.

Inflation moderated from 1.3% in December, which was the highest since August 2014, to 0.8% in January. As a result, inflation remained well below the Central Bank’s target range of 2.5%–3.5%. Annual average inflation in January held at 0.7% for the sixth consecutive month.

Core consumer prices, which exclude fresh food and energy prices, increased 0.2% in January over the previous month, which met December’s reading. Regarding annual figures, core inflation inched down from 2.2% in December to 2.1% in January.

The Central Bank expects annual average inflation of 1.7% in 2016. FocusEconomics Consensus Forecast panelists expect inflation to average 1.5% in 2016, which is unchanged from last month’s forecast. In 2017, the panel expects average inflationto reach 1.9%.

Author: Teresa Kersting, Economist

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Korea Inflation Chart

Korea Inflation January 2016

Note: Month-on-month and year-on-year changes of consumer price index in %.
Source: National Statistics Office of Korea (KOSTAT)

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