Korea: Consumer prices post largest fall since September 2019 in May
Consumer prices dropped 0.2% in May over the last month, a smaller drop than April’s 0.6% fall. Looking at the details of the release, housing and utilities prices plunged in May, in contrast, price pressures for transportation dropped at a more moderate pace. Meanwhile, food and non-alcoholic beverages prices were largely steady.
Consumer prices fell 0.3% on an annual basis in May, contrasting April’s 0.1% dip. May’s result represented the largest fall in consumer prices since September 2019. Annual average inflation ticked down to 0.4% in May (April: 0.5%). Lastly, core inflation rose to 0.5% from April’s 0.3%.
Analysis