Korea: Inflation accelerates in December
December 28, 2017
Consumer prices rose 0.3% in December from the previous month. The result, which followed the 0.7% month-on-month decrease recorded in November, was primarily driven by higher prices for food and non-alcoholic beverages, clothing and footwear, and transport. Market analysts were expecting a more moderate 0.2% increase in December.
The inflation rate accelerated from 1.3% in November—the lowest rate since August 2016—to 1.5% in December, closing in on the Bank of Korea’s 2.0% target rate and meeting market analysts’ expectations. Higher oil prices helped stoke inflation in December.
The core inflation rate, which excludes fresh food and energy prices, came in at 1.5% in December, above the 1.2% recorded in November. Annual average inflation held steady at 1.9% in December.
Korea Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 1.9% in 2018, which is down 0.1 percentage points from last month’s forecast. In 2019, the panel expects inflation to average 2.0%.
Author: Edward Gardner, Economist