In September, consumer prices rose 0.66% over the previous month, which nearly doubled the 0.38% increase recorded in August. Annual inflation followed suit and rose from 1.2% in August to 2.0% in September, exceeding market expectations of a 1.8% rate. As a result, annual inflation returned to the Central Bank's target range of 3.0% plus/minus 1.0 percentage points. The core inflation index, which excludes more volatile items such as fresh food and energy, rose 0.10% over the previous month, following the 0.19% increase observed in August. Consequently, annual core inflation edged up from 1.3% in August to 1.4% in September. The Central Bank expects inflation to average 2.7% this year before rising to 2.9% next year.
Inflation jumps in September
October 2, 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 25, 2016
The Korean economy slowed down in the third quarter of this year, expanding at the weakest pace in over a year.
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.