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%.
Author: Cecilia Simkievich, Economist