Korea Inflation


Inflation moderates further in February

In February, consumer prices rose 0.38% over the previous month, which was below the 0.48% increase recorded in January. As a result, annual inflation fell from 3.4% in January to 3.1% in February, matching market expectations and marking the lowest level since December 2010. The core inflation index, which excludes more volatile items such as fresh food and energy, rose 0.10% over the previous month, which was below the 0.29% increase observed in January. Accordingly, annual core inflation edged down from 3.2% in January to 2.5% in February. According to the Economic Outlook for 2012, the Central Bank sees inflation ending 2012 at 3.3%.


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