In October, consumer prices rose 0.17% over the previous month, which was well below the 1.12% increase recorded in September. Lower prices for culture and recreation, healthcare as well as clothing and footwear partially compensated for higher prices for food and non-alcoholic beverages, household equipment and transport. Despite the subdued increase, annual inflation stepped up half a percentage point, from 3.6% in September to 4.1%, surprising market analysts that had expected inflation to drop to 3.4%. The October rate marks a 20-month high, as inflation is now at the highest level since February 2009 Core inflation, which excludes more volatile items such as fresh food and energy, remained flat over the previous month. As a consequence, annual core inflation remained unchanged at September's 1.9%. The moving three-year average inflation rate, which is the basis of the Central Bank's monetary policy, rose for the first time in ten months, inching up from 3.4% in September to 3.5%, thus exceeding the Central Bank's inflation target of 3.0% but remaining within the tolerance range of 1.0 percentage points.
Inflation jumps to 20-month high
November 1, 2010
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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.