Consumer prices added 0.27% over the previous month in February, which was below the 0.54% rise observed in January. The result represents the third consecutive increase in consumer prices. Higher prices for food and non-alcoholic beverages, as well as for housing, water, electricity gas and other fuels were again the main contributors to the monthly increase. Annual headline inflation inched down from 1.1% in January to 1.0% in February, which fell short of the 1.1% rate expected by the market. The annual reading remains well below the Central Bank's target range of between 2.0% and 4.0%. In February, annual average inflation inched down from 1.3% in January to 1.2% in February. Meanwhile, core consumer prices, which exclude more volatile items such as fresh food and energy, rose 0.22% over the previous month, matching the increase seen in January. Annual core inflation fell from 1.8% in January to 1.7% in February. The Central Bank expects annual average inflation to be 2.3% in 2014, before rising to 2.8% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.3% in 2014, which is down 0.1 percentage points from last month's forecast. According to the panel, average inflation should reach 2.8% in 2015.
Inflation inches down in February
March 3, 2014
Looking for forecasts related to Inflation in Korea? Download a sample report now.
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.