Korea Inflation

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Korea: Annual headline inflation holds at record low in January

February 3, 2015

In January, consumer prices increased 0.5%, which was up from the flat reading tallied in December and marked the highest result in a year. January’s print reflected that lower prices for transport due to the falling cost of fuel were offset by a steep jump in prices for tobacco. A new tax that nearly doubled the price of a pack of cigarettes was introduced on 1 January.

Annual headline inflation in January was steady at December’s 0.8%. January’s reading slightly undershot the 0.9% that markets had expected, and continued to mark a record low. Annual average inflation remained unchanged at 1.3% for the ninth consecutive month.

Core consumer prices, which exclude fresh food and energy prices, rose 0.94% in January over the previous month, which was up from the 0.12% tallied in December. Regarding annual figures, core inflation remained unchanged at December’s 2.0%.

The Central Bank expects annual average inflation of 1.9% in 2015 and 2.6% in 2016. FocusEconomics Consensus Forecast panelists expect inflation to average 1.6% in 2015, which is down 0.3 percentage points from last month’s forecast. In 2016, the panel expects average inflation to reach 2.2%.


Author:, Economist

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Korea Inflation Chart


Korea Inflation January 2015

Note: Month-on-month and year-on-year changes of consumer price index in %.
Source: National Statistics Office of Korea (KOSTAT)


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