In July, consumer prices dropped 0.19% over the previous month, down from the 0.09% drop recorded in June. Annual inflation fell from 2.2% in June to 1.5% in July, which was below market expectations of a 2.1% rate and marked the lowest level since May 2000. As a result, annual inflation is now below the Central Bank's target range of 3.0% plus/minus 1.0%. The core inflation index, which excludes more volatile items such as fresh food and energy, was flat over the previous month, following a 0.29% increase in June. Annual core inflation edged down from 1.5% in June to 1.2% in July, the lowest level since February 2000.
Inflation falls to lowest level in over 12 years
August 1, 2012
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Korea Inflation Chart
Note: Month-on-month and year-on-year variation of consumer price index in %.
Source: KOSTAT-KOSIS and FocusEconomics calculations.
Korea Economic News
October 13, 2016
At its 13 October monetary policy meeting, the Bank of Korea (BoK) announced that it will hold the base rate constant at a record low of 1.25%, which was largely in line with market expectations.
October 5, 2016
In September, consumer prices rose 0.6% over the previous month, which contrasted the 0.1% decrease in August and overshot the 0.2% increase the markets had expected.
October 3, 2016
Korea’s Customs Services reported that exports totaled USD 40.9 billion in September, which represented a 5.9% contraction over the USD 43.4 billion recorded in the same month last year.
September 30, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector produced by the Bank of Korea (BoK) rose from 74 points in September to 75 points in October.
September 30, 2016
In August, industrial production accelerated and expanded 2.3% year-on-year, which was up from both the 1.6% increase registered in July and the 1.6% rise the markets had expected.